Roosevelt Hotel leased out to New York City firm for three years

[FOOLS_NIGHTMARE]

• NY City health corporation will run migrant business at Roosevelt Hotel.
• US firm reaches a settlement agreement with employees’ union of hotel.
• US firm offered to utilise hotel at the rate of $200 per room per day.

KARACHI: The Pakistan International Airlines (PIA) has inked an agreement with the New York City Health and Hospitals Corporation management to lease out Roosevelt Hotel in the US state.

In a statement on Monday, the PIA management said Roosevelt Hotel will be operated by the New York city local corporation for a period of three years.

Under the agreement, the US firm will provide residential facilities to 'housing migrants' in the hotel.

Additionally, the agreement includes an 18-month guarantee provided by the corporation to PIA Investment Management.

Furthermore, a settlement agreement has been reached between the New York City Health & Hospital Corporation and the New York Hotel and Gaming Trade Councils (the employees' union) of the Roosevelt Hotel.

In a letter to stockholders at the Pakistan Stock Exchange (PSX), PIA management has informed them that following the new agreement, the Roosevelt Hotel has resumed its operations.

The PSX had recently sought a response from the PIA administration regarding the status of the Roosevelt Hotel.

Last month, the Economic Coordination Committee (ECC) of the Cabinet approved the recommendations of the Ministry of Aviation to form a committee to negotiate with the New York City government and Roosevelt Hotel Union for the re-opening of the hotel.

The Ministry of Aviation submitted a summary of challenges and re-opening of Roosevelt Hotel, New York, and informed that the PIA Investment Limited (PIA-IL) management had got an opportunity offered by the New York City government to utilise the hotel (1,025 rooms) over a period of three years for migrant business at the rate of $200 per room per day.

After a detailed discussion, the ECC meeting chaired by Finance Minister Ishaq Dar had approved the formation of a four-member negotiating committee led by the Secretary Aviation Division to negotiate with the New York City Government and the Hotel Union.

The ECC had also allowed PIA-IL/ RHC to utilise the funds of $1.145 million from the available balance as bridge financing to commence the re-opening work at the hotel.

Roosevelt Hotel leased out to New York City firm for three years

NY City health corporation will run migrant business at Roosevelt Hotel.US firm reaches a settlement agreement with employees’ union of hotel.US firm offered to utilise hotel at the rate of $200 per room per day.

www.geo.tv

 

[HAIDER]

• NY City health corporation will run migrant business at Roosevelt Hotel.
• US firm reaches a settlement agreement with employees’ union of hotel.
• US firm offered to utilise hotel at the rate of $200 per room per day.

KARACHI: The Pakistan International Airlines (PIA) has inked an agreement with the New York City Health and Hospitals Corporation management to lease out Roosevelt Hotel in the US state.

In a statement on Monday, the PIA management said Roosevelt Hotel will be operated by the New York city local corporation for a period of three years.

Under the agreement, the US firm will provide residential facilities to 'housing migrants' in the hotel.

Additionally, the agreement includes an 18-month guarantee provided by the corporation to PIA Investment Management.

Furthermore, a settlement agreement has been reached between the New York City Health & Hospital Corporation and the New York Hotel and Gaming Trade Councils (the employees' union) of the Roosevelt Hotel.

In a letter to stockholders at the Pakistan Stock Exchange (PSX), PIA management has informed them that following the new agreement, the Roosevelt Hotel has resumed its operations.

The PSX had recently sought a response from the PIA administration regarding the status of the Roosevelt Hotel.

Last month, the Economic Coordination Committee (ECC) of the Cabinet approved the recommendations of the Ministry of Aviation to form a committee to negotiate with the New York City government and Roosevelt Hotel Union for the re-opening of the hotel.

The Ministry of Aviation submitted a summary of challenges and re-opening of Roosevelt Hotel, New York, and informed that the PIA Investment Limited (PIA-IL) management had got an opportunity offered by the New York City government to utilise the hotel (1,025 rooms) over a period of three years for migrant business at the rate of $200 per room per day.

After a detailed discussion, the ECC meeting chaired by Finance Minister Ishaq Dar had approved the formation of a four-member negotiating committee led by the Secretary Aviation Division to negotiate with the New York City Government and the Hotel Union.

The ECC had also allowed PIA-IL/ RHC to utilise the funds of $1.145 million from the available balance as bridge financing to commence the re-opening work at the hotel.

Roosevelt Hotel leased out to New York City firm for three years

NY City health corporation will run migrant business at Roosevelt Hotel.US firm reaches a settlement agreement with employees’ union of hotel.US firm offered to utilise hotel at the rate of $200 per room per day.

www.geo.tv

What insult of this prime property. A hotel around this area during summer goes around 600 per nite and this poor Pakistani property massive abuse. Refugee prison center.... lolllllllll

 

[Dalit]

$200 per room per day... Migrant business...

This is truly a joke.

 

[HAIDER]

$200 per room per day... Migrant business...

This is truly a joke.

This hotel has around 18 shops and rent of these shops generates million...

 

[Dalit]

This hotel has around 18 shops and rent of these shops generates million...

It is a prime location. The rent should be very high.

 

[HAIDER]

It is a prime location. The rent should be very high.

average rent in his area is around 85$ per square foot...now you guess the rent...

 

[Baburfromsarmarkand]

Good, we will have some forex reserves soon.

 

[zn426]

It's a government contract so you can't reasonably expect they're going to pay retail rates, particularly for a hotel that hasn't been occupied in three years. I'm frankly amazed PIA still owns the hotel despite the economic disruptions and repeated attempts by Indian investors to try to grab it out of PIA's hands.
It's not riches to be sure but better than sitting empty. Annual revenue assuming full occupancy is around $74 million a year. Not sure what profit margins would be.

 

[Dalit]

It's a government contract so you can't reasonably expect they're going to pay retail rates, particularly for a hotel that hasn't been occupied in three years. I'm frankly amazed PIA still owns the hotel despite the economic disruptions and repeated attempts by Indian investors to try to grab it out of PIA's hands.
It's not riches to be sure but better than sitting empty. Annual revenue assuming full occupancy is around $74 million a year. Not sure what profit margins would be.

Peanuts is what it is.

 

[epebble]

$200 per room per day... Migrant business...

This is truly a joke.

I can't reconcile this $200 room rate with this:

Under this agreement, the PIA’s owned hotel will be operated by the New York City Health and Hospitals Corporation for a period of three years, while the sources revealed that this agreement is valued at an annual amount of $5.4 million.

That suggests only 74 rooms are leased. The property has 1,000 rooms.

PIA signs new agreement for its Roosevelt Hotel in USA

KARACHI: Pakistan International Airline (PIA) has signed a new agreement for its Roosevelt Hotel in the United States of America, which help in generating

arynews.tv

 

[Edevelop]

Good move. Make money from leasing it. Scribe Hotel in Paris should follow. This option is preferred over selling it.

 

[lightning F57]

I can't reconcile this $200 room rate with this:

Under this agreement, the PIA’s owned hotel will be operated by the New York City Health and Hospitals Corporation for a period of three years, while the sources revealed that this agreement is valued at an annual amount of $5.4 million.

That suggests only 74 rooms are leased. The property has 1,000 rooms.

PIA signs new agreement for its Roosevelt Hotel in USA

KARACHI: Pakistan International Airline (PIA) has signed a new agreement for its Roosevelt Hotel in the United States of America, which help in generating

arynews.tv

I'm getting the feeling something nefarious is going on some usual corruption and kickbacks.

 

[epebble]

I'm getting the feeling something nefarious is going on some usual corruption and kickbacks.

It is a public transaction. There may be nothing hanky-panky. NYC is leasing 175 rooms. $200 is the rack rate. For leasing a block of 175 rooms, they are probably getting it at a little more than 50% discount. For the owner, the cash flow will pay for taxes and maintenance at least instead of keeping the property idle and allowing it to deteriorate. It has been vacant for some time and if that continues, there is a possibility the property may be condemned for code violations.

New York City launches new migrant arrival center at Midtown hotel

The intake center would operate from the shuttered Roosevelt Hotel, which closed in 2020.

gothamist.com