NYC Ends Lease with Roosevelt Hotel Amid Asylum Seekers Controversy
New York City’s Mayor, Eric Adams, announced on Monday that the city will end its $220 million lease agreement with the Roosevelt Hotel, owned by Pakistan International Airlines (PIA). The decision comes after criticism over American taxpayers’ money being used to house asylum seekers.
Key Points
- NYC ends $220 million lease with Roosevelt Hotel due to asylum seeker housing controversy.
- The hotel, once a luxury destination, became a migrant processing center in 2023.
- Closure expected to save millions in taxpayer dollars amid a decline in migrant arrivals.
- The hotel will undergo privatization, with a joint venture development agreement signed in early 2024.
Background of Roosevelt Hotel Lease
- Hotel’s History: The Roosevelt Hotel, named after former U.S. President Theodore Roosevelt, opened in 1924. Once serving the wealthy elite, it later became a processing center for migrants.
- Lease Agreement: In June 2023, the city began leasing the hotel to house asylum seekers, with a lease worth $220 million for three years. This was part of an emergency response to the influx of migrants.
- Closure and Transition: The hotel had closed in 2020 due to financial losses from the COVID-19 pandemic but reopened in 2023 to accommodate migrants, primarily those deported from Texas by conservative Governor Greg Abbott.
Mayor’s Announcement and Reasoning
- Closure Justification: Mayor Adams credited the facility’s closure to successful emergency management policies, aiming to save millions of taxpayer dollars.
- Financial Impact: The Roosevelt Hotel housed tens of thousands of migrants in its 1,025 rooms, with an estimated cost of $200 per night per migrant.
- Declining Migrant Arrivals: Weekly migrant arrivals to the city have significantly dropped from 4,000 at the crisis peak in 2023 to around 350 in early 2024.
- Role in Migrant Processing: The hotel was a key processing center, handling about 75% of all migrants arriving in the city.
Privatization of Roosevelt Hotel
- Joint Venture Agreement: In February 2024, the caretaker government of Pakistan entered into a joint venture agreement with a U.S. consortium to develop the hotel, aligning with PIA’s privatization process.
- Ownership History: PIA leased the hotel in 1979, later acquiring full ownership in partnership with Saudi Prince Faisal bin Khalid in 2000.
