After it was announced last week that the historic Roosevelt Hotel would be closing its doors, owner Pakistan International Airlines (PIA) has since teased to what will become of the Midtown East building. One possibility is a new hotel standing 100 stories. Set in a prime location, the block-long 19-story structure is bordered by Madison and Vanderbilt Avenues and East 45th and 46th streets.
PIA has publicly stated that there are no currently plans for the building once the hotel closes. As reported by ProPakastani, during a Senate Standing Committee on Aviation PIA’s CEO Air Marshal Arshad Malik brought up the pending Roosevelt Hotel closure with regard to the financial constraints of the airline.
Arshad Malik said the hotel would be closed down by December 31 for renovations and future utility plans. At that point it would be decided if the Roosevelt Hotel needed necessary renovations or repair work, or the existing building will be demolished to make room for the new supertall. Assessed by accounting firm Deloitte, the current market value of the hotel is $662 million based on highest and best use, according to Malik.
PIA’s CEO also said the hotel revenue was in the negative in part because of debt servicing and unionization, as well as the dilapidated conditions of the building including infrastructure, guest rooms, and public areas. The coronavirus pandemic has only aggravated the declining business, which is estimated to increase revenue losses to $6 million per year.