The Roosevelt Hotel, a New York City icon, has found itself at the center of a heated debate. While the grand hotel once hosted the rich and famous, it is now temporarily providing shelter to asylum seekers under a three-year agreement worth $220 million. This deal, inked between the New York City government and Pakistan International Airlines (PIA), the hotel’s owner, has drawn criticism for being taxpayer-funded and involving a foreign-owned property.
Vivek Ramaswamy, a prominent Indian-American entrepreneur and incoming official in President-elect Donald
Trump’s administration, has called the arrangement "nuts", arguing that it amounts to using taxpayer dollars to fund a foreign government. “A taxpayer-funded hotel for illegal migrants is owned by the Pakistani government which means NYC taxpayers are effectively paying a foreign government to house illegals in our own country," Ramaswamy stated on social media platform X.
This agreement, struck in June 2023 by then-Pakistani Minister for Aviation and Railways, Khawaja Saad Rafique, aims to provide crucial revenue for PIA, which is facing financial difficulties. The struggling airline stands to benefit directly with $18 million in cash.
The deal involves renting all 1,025 rooms in the historic hotel at a rate of $210 per room per night, providing much-needed temporary relief for PIA. The arrangement initially guaranteed one year of operations, but Rafique expressed optimism about extending the contract for the full three years. He highlighted the deal’s ability to temporarily
stray its status as a landmark, a designation that would have restricted modifications and use of the property.
The Roosevelt Hotel, a symbol of New York City’s architectural grandeur, opened its doors in 1924. The 19-story building, named after President Theodore Roosevelt, boasts a beautiful Italian Renaissance Revival style. Over the years,
ownership changed hands several times before PIA acquired full ownership in 2000.
Once known for its unique amenities like a pet kennel, childcare services, and an in-house doctor, the hotel faced financial hardship and ultimately closed its doors in October 2020 due to mounting liabilities. In May 2023, the Roosevelt Hotel reopened its doors as a shelter for asylum seekers.
This new lease on life for the hotel is part of a larger response by Mayor Eric Adams’ administration to accommodate a surge of asylum seekers in the city. The Roosevelt, along with over 100 other hotels, has been rented to provide temporary housing and essential services including vaccinations and food.
While the deal is lauded by city officials as a practical solution to an urgent situation, critics like Ramaswamy argue that the city’s reliance on foreign-owned properties for housing asylum seekers is a frivolous use of taxpayer funds.
For Pakistan, the Roosevelt deal offers a much-needed financial lifeline, aligning with the IMF’s $1.1 billion bailout package aimed at preventing a default.
The controversy surrounding the Roosevelt Hotel reflects a broader debate about how to balance urgent humanitarian needs with fiscal responsibility. As Ramaswamy takes on his new role in the Trump administration, his criticism of the deal could foreshadow increased scrutiny of similar arrangements.
" — Vivek Ramaswamy (@VivekGRamaswamy) December 1, 2024
<img nw18-data-src="https://images.firstpost.com/uploads/2024/12/Pakistan-PIA-1-Reuters-2024-12-20b2406b992958f6a82689a030b756ef.jpg" alt="View of a Pakistan International Airlines (PIA) passengers plane, taken through a glass panel, at the Allama Iqbal International Airport in Lahore, Pakistan, January 29, 2024. File Image/Reuters"/>
<img nw18-data-src="https://images.firstpost.com/uploads/2024/12/The-Roosevelt-Hotel-NYC-2-Reuters-2024-12-01a319f004b023e4370f8dc0c295a11c.jpg" alt="A food delivery person walks through the lobby of the Roosevelt Hotel in the Manhattan borough of New York City, New York, US, October 13, 2020. File Image/Reuters"/>
<img nw18-data-src="https://images.firstpost.com/uploads/2024/12/The-Roosevelt-Hotel-NYC-3-Reuters-2024-12-97d6c6518370ea9d4f3400d0d4653847.jpg" alt="People stand outside the Roosevelt Hotel, which has acted as a makeshift shelter for arriving migrants in the Midtown section of New York City, US, November 28, 2023. File Image/Reuters"/>