Pakistan International Airlines (PIA) has signed an agreement with the New York City Health and Hospitals Corporation Management to lease out the Roosevelt Hotel in New York, US.
The corporation has provided a guarantee of 18 months to PIA Investment Management. In addition, the US firm has reached a settlement agreement with the employees’ union of the hotel, leading to its reopening.
PIA’s leasing of the Roosevelt Hotel presents a strategic move by the airline to utilise its resources and generate revenue through partnerships and operations in the hospitality sector.
The Pakistan Ministry of Aviation received approval for the recommendations to lease out the Roosevelt Hotel from the Economic Coordination Committee (ECC) of the Cabinet.
The ministry informed that PIA Investment Limited (PIA-IL) had been offered an opportunity by the New York City government to use the hotel’s 1,025 rooms for migrant business at a rate of $200 per room per day.
The ECC has formed a negotiating committee, led by the Secretary of the Aviation Division, to engage in discussions with the New York City government and the Hotel Union.
To initiate the reopening of the hotel, the ECC permitted PIA-IL/RHC to use $1.145m from the available balance as bridge financing.