New York City has announced the termination of its $220m lease agreement with the Roosevelt Hotel in the US, which has been housing asylum seekers since its reopening in 2023.
This decision will lead to the closure of both the Asylum Seeker Arrival Center and the Humanitarian Emergency Response and Relief Center at the hotel.
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It comes amid criticism over the use of American taxpayers’ money and marks a shift in the city’s approach to managing the influx of migrants.
New York City mayor Eric Adams cited the city’s successful emergency response, along with policy decisions, were among the reasons behind the closure.
He stated that this move would help save taxpayers’ dollars, acknowledging the pressure from the federal government and right-wing hardliners to end the facility’s operation as a shelter.
Owned by Pakistan International Airlines (PIA), Roosevelt Hotel closed in 2020 due to financial losses exacerbated by Covid-19. Since 2023, it has been accommodating thousands of migrants across its 1,025 rooms at an estimated cost of $200 a night.
The city has experienced a decrease in weekly migrant arrivals, from a peak of 4,000 in 2023 to around 350 at present.
The hotel played a crucial role, handling approximately 75% of the migrants arriving in New York City and providing essential services such as legal assistance, medical care, and reconnection services.
Adams said: “While we’re not done caring for those who come into our care, today marks another milestone in demonstrating the immense progress we have achieved in turning the corner on an unprecedented international humanitarian effort.
“Our administration has skillfully managed this crisis, which has seen over 232,000 migrants enter our city asking for shelter, and The Roosevelt Hotel has been key in allowing us to effectively manage our operations, processing over 173,000 individuals through these doors.”
In May 2023, PIA entered a lease agreement with the New York City Health and Hospitals Corporation Management for the Roosevelt Hotel.
This move was part of PIA’s strategy to leverage its assets and generate revenue through partnerships and operations in the hospitality sector.
By February 2024, the interim government entered an agreement with a US consortium for the co-development of the Roosevelt Hotel while the privatisation of the loss-making PIA neared completion.
Several months later, the Privatisation Commission’s board proposed a joint venture as the ideal transaction structure for the hotel.
The 19-storey Roosevelt Hotel, named after former US President Theodore Roosevelt, has been a New York City landmark since its opening in 1924.
