Saad Rafique denies rumours surrounding Roosevelt Hotel's sale

• Rafique says future of hotel will be decided next year by new govt.
• Says financial adviser should be hired to explore all possibilities for joint ventures. 
• Selling is not an option, not even in the future: minister.

Aviation and Railways Minister Khawaja Saad Rafique indubitably denied the rumours about the sale of the Roosevelt Hotel to the United States, which is owned by Pakistan International Airlines (PIA), The News reported.

In a press conference on Saturday, the aviation minister said that the future of the hotel will be decided next year by the new government. 

He said a financial adviser should be hired to explore all possibilities for joint ventures to develop the hotel as recommended by the previous government.

Rafique said that he wants the new government to make decisions regarding the Roosevelt Hotel. 

"We just want to make it operational and selling the hotel is not an option, not even in the future," he stressed. 

Speaking about PIA, the minister said that the airline is struggling a lot. He said that the PIA has earned Rs2.14 billion from a joint venture with the Turkish Airline. He also said that there has been a proposal from Emirates Airlines for a joint venture which is under consideration.  

The minister said that it is expected that PIA's revenue hit Rs170bn, which is considered the highest. 

He also said a new Boeing 777 will be inducted into the PIA fleet in the coming days. He added that the airline was expected to grow its revenue to Rs170 billion this year, which so far was the highest.

Permanently closed 

The PIA-owned Roosevelt Hotel shut its doors to guests permanently on October 31, 2020, due to financial constraints.

"Due to the current economic impacts, after almost 100 years of welcoming guests to 'The Grand Dame of New York' The Roosevelt Hotel is regretfully closing its doors permanently as of October 31, 2020," the notice said.

The development came after the then-Economic Coordination Committee (ECC) approved funds worth $142 million to address the financial challenges faced by the hotel.

Hotel not being sold

There have been rumours now and earlier as well that the government has decided to sell the hotel, however, the government has refuted those rumours repeatedly. 

Earlier on August 26, 2022, former finance minister Miftah Ismail clarified that the federal government has no intention of selling the shares of Roosevelt Hotel to Qatar.

His comments came after reports suggested that Pakistan was mulling selling shares of the state asset to acquire loans from the Gulf state.

"Coincidentally, we did not speak about Roosevelt Hotel during our meetings," the finance minister said.

The Roosevelt Hotel

The hotel, constructed by Niagara Falls businessman Frank A Dudley, opened its doors for guests on Sept 23, 1924. It was managed by the United Hotels Company.

In 1979, the national carrier leased the hotel through its investment arm, PIA Investments Ltd, with an option to purchase the building after 20 years. Saudi Arabia’s Prince Faisal bin Khalid bin Abdulaziz Al Saud was a key investor in the 1979 deal.

In 1999, after the completion of the 20-year period, PIA bought the hotel for $36.5 million.

In 2005, the airline agreed to buy out its Saudi partner in exchange of the prince’s share in Hotel Scribe in Paris at the cost of $40 million and the PIA’s share in the Riyadh Minhal Hotel.

The national carrier since then has held a 99% share in the hotel while the Saudis hold only 1% stake.