New York City is ending its $220 million lease agreement with the Pakistan International Airlines (PIA)-owned Roosevelt Hotel following intense criticism from some U.S. President Donald Trump’s supporters over the use of taxpayer money to house asylum seekers.
The iconic Manhattan hotel was closed in 2020 due to a severe loss of revenue arising from the coronavirus pandemic. Three years later, the management inked a three-year lease contract with New York City, which converted it into a shelter for asylum seekers.
Under Trump, the federal government and rightwing hardliners have ramped up criticism of the agreement, with Mayor Eric Adams finally announcing the closure of the facility this week.
At its peak, the hotel reportedly housed tens of thousands of migrants across its 1,025 rooms at an estimated cost of $200 per night. It served as a key processing center, handling around 75% of the migrants who arrived in the city. However, the city has seen a sharp decline in weekly migrant arrivals, dropping from 4,000 in 2023 to approximately 350 now. The announcement is part of a larger scheme to shut down 53 migrant shelters across New York.
In a statement, Mayor Adams credited the closure to the administration’s successful emergency response and policy decisions. He said the decision would help the city save millions of taxpayer dollars.
The hotel, which opened in 1924, was named after President Theodore Roosevelt. In 1979, American real estate developer Paul Milstein leased the hotel to PIA. In 2000, PIA and Saudi Prince Faisal bin Khalid bought the hotel. Subsequently, PIA acquired Prince Faisal’s ownership stake and became the sole owner.