ISLAMABAD: The Federal Minister for Aviation Ghulam Sarwar Khan on Monday supposed that the government has no meaning to sell the significant Roosevelt Hotel in New York, terming news about its sale as “speculative” and “misleading”.
The Hotel, a New York City landmark, owned by the Pakistan International Airlines (PIA), edannounce to lock its doors permanently last week, after almost 100 years, due to the coronavirus pandemic and a fall in business activities.
The PIA had acquired the 19-story building in 1979 on the joint venture, the minister explained, as reported by the condition-run Associated Press of Pakistan. In 1999, the Airlines bought complete shareholding from its own capital and without any aid from the government of Pakistan.
Named following the American leader Theodore Roosevelt, the hotel has featured in several big-voucher Hollywood production and overtime acquired an iconic status in Manhattan.
After purchasing the hotel, the PIA renovated the structure due to which operations stayed in income till 2018, the minister said. The hotel has not undergone renovation in the last over 20 years.
proceeds began to slump in 2019, putting the financial place of the Roosevelt Hotel in the red, Khan said. He explain that the main cause for its downfall was a failing infrastructure, which was further compounded by the deadly disease
The minister said the hotel was at present operational and had valid contracts till December this year with a variety of other airlines. Multiple options were being considered for its prospect and all decisions were made together by the hotel’s board and the government of Pakistan, he additional
As per estimations, the cost of basic renovation amounted to $32 million, whereas full renovations required $110 million.
Previously, the Roosevelt Hotel’s organization had taken a loan of $160 million from the JP Morgan Bank and had been creation regular expenditure on its own. This year, the payable amount had reduced to $105 million. But the lender sold off its liabilities to one more business which was paying attention in acquireed the Hotel.
This was unaccaptable to the PIA and government of Pakistan, the APP reported
The PIA management was then able to convince the government to intervene by paying off the loans in one-go and securing the assset