PIA’s Iconic Roosevelt Hotel To Shut Down Permanently On October 31
The hotel said that it was working on substitutes for the guests with a future reservation.
The Pakistan International Airlines Investment Limited’s (PIAIL) iconic Roosevelt Hotel will close its doors to customers permanently from October 31st, due to financial constraints, according to a statement on the hotel’s website.
“Due to the current economic impacts, after 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.
“We have been honored to serve alongside our wonderful staff and to be a part of our guests’ and clients’ lives and celebrations, who have graced us over these past nine decades,” it said.
The hotel said that it was working on substitutes for the guests with a future reservation. “We have appreciated being as much a part of our guests’ stories as we have been an inherent part of the history of Midtown Manhattan since 1924.”
The statement was later removed from the website, but the hotel’s front desk is not receiving reservations post-October 31st.
When approached, the staff said that the hotel is being closed but declined to share further details.
The development comes following the ruling of the Economic Coordination Committee (ECC) on September 2, which authorized funds worth $142 million to confront the financial challenges faced by the PIAIL-owned Roosevelt Hotel in New York, US.
The decision to grant the PIAIL the funds was made in a meeting supervised by Adviser to the Prime Minister on Revenue & Finance, Abdul Hafeez Shaikh.
Earlier, the Cabinet Committee on Privatisation had said that it would not be selling the Roosevelt Hotel York but would run it under a joint venture with a third party.
The Roosevelt Hotel
The hotel, established by Niagara Falls businessman Frank A. Dudley, opened its doors for guests on September 23rd, 1924. The United Hotels Company managed it.
In 1979, the national carrier leased the hotel via its investment arm, PIA Investments Limited, to buy the building after 20 years.
Saudi Arabia’s Prince Faisal bin Khalid bin Abdulaziz Al Saud was a crucial investor in the 1979 deal.
In 1999, after completing the 20 years, PIA bought the hotel for $36.5 million.
In 2005, the airline consented to buy out its Saudi partner to exchange the prince’s share in Hotel Scribe in Paris at the price of $40 million and the PIA’s share in the Crowne Plaza Hotel Riyadh Minhal Hotel.
Since then, the national carrier has held a 99% share in the hotel while the Saudis hold only a 1% stake.
The managing director of PIAIL had earlier stated that The Roosevelt remained profitable for 99 years and suffered a loss of only $1.5 million last year.
According to reports, financial experts would be hired to decide the future of the prestigious property in the heart of Manhattan, and PIAIL is also looking into the matter.
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