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Thursday 18 July, 2024
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Roosevelt Hotel, PIA Owned, Leased to New York Govt for 3 Years

BY Shahzad Saeed Jun 05, 2023. 07:01 pm UPDATED: Jun 05, 2023. 07:01 pm

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The Roosevelt Hotel in New York City has been formally leased by the government to the New York City (NYC) Administration for a period of three years at a cost of $220 million.

According to Khawaja Saad Rafique, Federal Minister for Railways and Aviation, Islamabad and the NYC government have signed a contract. The minister told reporters on Sunday, “Under this contract, we will receive US $220m that will enable us to clear the hotel’s various liabilities in addition to earning handsome revenue for our country’s treasury.

According to the minister, the new agreement spares the hotel from being designated as a landmark and gives the lessee (the NYC administration) access to use up to 40 stories of the structure with a change in use.

He provided more information, revealing that the lease term included a guaranteed salary for an additional 1.5 years. 600 of the hotel’s 1,025 rooms have recently been turned over to NYC, and the remaining 425 will be done so within the next 30 days. The contract stated that the first year’s hotel rates would be $202 million, and the next two years’ rates would be $205 million and $210 million, respectively.

After three years, Pakistan will receive the roughly 100-year-old hotel in the same condition that it is in now.

According to the aviation minister, the agreement relieved the government of its obligations to 479 employees because only 77 of them would be required to work and the other 402 would be let go.

Speaking of additional developments, the minister revealed that the Aviation Ministry had made the decision to contract out the management of Pakistan’s three main airports, located in Karachi, Islamabad, and Lahore.

Pakistan’s aviation industry has faced financial difficulties recently as a result of high operating costs, rising fuel prices, and improper cash management. Due to criticism from the industry for not upholding international safety standards, Pakistani airlines have experienced temporary bans and restrictions in a number of nations.

The government’s decision to lease the Roosevelt Hotel to NYC and outsource three significant airports is a significant step toward resolving problems and operational losses experienced by the aviation industry.

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Read more: MDCAT 2023: PMDC Announces Examination Date

 

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