National Accountability Bureau (NAB) has formally initiated the probe to ascertain the reasons behind the closure of Roosevelt Hotel, the PIA owned iconic hotel in midtown Manhattan, New York.
The Roosevelt Hotel had closed its doors permanently on 31 October due to volatile economic conditions and a drop in business activities after the Coronavirus pandemic.
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According to details, NAB Rawalpindi has directed concerned institutions, including PIA, to furnish relevant records to facilitate the investigation process.
Last month, Chairman NAB, Justice (r) Javed Iqbal had taken notice of the closure of the offshore asset of the national flag carrier.
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Federal Minister for Aviation, Ghulam Sarwar Khan, also refuted reports which suggested PIA had decided to sell the Roosevelt Hotel at a lower price.
PIA had acquired the 19-story building through a partnership in 1979. The national carrier became its sole shareholder in 1999. The Roosevelt Hotel had been a profitable entity until 2018. Its finances began to drop in 2019 and the situation was exacerbated due to the COVID-19 pandemic, forcing the management to announce its closure last month.
Last week’s news that the historic Roosevelt Hotel was closing had New Yorkers teary-eyed and developers drooling.
The historic, nearly 100-year-old Roosevelt announced on Oct. 12 that it would be checking out for good at the end of the month because it could no longer survive the pandemic. Longtime owner Pakistan International Airlines said it has “currently no plans for the building” after that. But that hasn’t stopped tongues from wagging over the real estate at 45 E. 45th St., which takes up the whole block between Madison and Vanderbilt avenues and between East 45th and 46th streets.
Surely, it will be missed as the setting for Guy Lombardo’s New Year’s Eve ballroom performances and for its atmospheric public spaces. But it’s the property’s potential that is tantalizing developers, who’ve been circling it for years as the roughly 43,000-square-foot site can support a new building much larger than the current 18-story one.
The Roosevelt lies within the Vanderbilt Corridor rezoning area, which preceded wider East Midtown rezoning. A new building in the corridor may be taller and have much more floor area than an existing one subject to city approval, depending on public amenities provided by owners and other considerations.
Sources said PIA paid off all of the Roosevelt’s debt shortly before the closing announcement. However, buyer wannabes might be out of luck. PIA seems likely to convert the property into a Class A office tower in a joint-venture partnership with a development company.
Asked if the Roosevelt could be revived as a born-again luxury inn, a hotel dealmaker who didn’t want to be identified scoffed, “The office market will rebound a lot sooner than the hotel market.”
Pakistani aviation minister Ghulam Sarwar Khan last week termed chatter about a sale “misleading” and “speculative” and said there were no plans to unload the hotel.
In 2017, when PIA was weighing options for the hotel due to poor returns, Pakistani Prime Minister Shahid Khaqan Abbasi said his government considered the Roosevelt an important historical property and told PIA to forget about selling.
The venerable inn was the setting for scenes from “Wall Street,” where Michael Douglas, as Gordon Gekko, delivered his “Greed is good” speech in the ballroom. “Maid in Manhattan” with Jennifer Lopez and many other films also shot scenes there.
Cushman & Wakefield investment-sale wizard Doug Harmon, who is not involved at the Roosevelt, described its desirability for office use: “The Grand Central submarket maintains one of the longest average tenant tenures in the city. As the city recovers, there will be an increased desire for offices near mass transit or train lines to ease commute times. Nobody is coming out of 2020 with an increased desire for longer commutes.”
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