New York City has terminated its USD 220 million lease agreement with the PIA-owned Roosevelt Hotel, ending its role as a temporary shelter for asylum seekers. The decision comes after mounting criticism from U.S. President Donald Trump’s supporters, who opposed the use of taxpayer money to house migrants in a high-profile Manhattan property.
The Roosevelt Hotel, a historic landmark that closed in 2020 due to financial losses during the pandemic, reopened in 2023 under a lease agreement with the city to accommodate a surge of asylum seekers. The hotel, with its 1,025 rooms, housed tens of thousands of migrants at an estimated cost of USD 200 per night, making it a central processing center for nearly 75% of the migrants arriving in New York City.
New York City Mayor Eric Adams announced the termination of the lease, citing a significant decline in weekly migrant arrivals—from 4,000 at the peak in 2023 to around 350 currently—as a key reason. The closure, he stated, reflects the city’s successful emergency response and will result in substantial savings for taxpayers.
The Roosevelt Hotel’s iconic status in New York City’s hospitality history adds a layer of complexity to the decision. Opened in 1924, the 19-story property is an architectural gem, designed in the Italian Renaissance Revival style by George B. Post & Son. Its rich history includes luxury amenities like a pet kennel, childcare services, and even an in-house doctor, making it a symbol of New York’s golden era of hospitality.
In 2000, Pakistan International Airlines (PIA) fully acquired the property, which became a unique asset in New York’s competitive hotel market. However, the recent controversy over its use as a migrant shelter has overshadowed its legacy.
The situation escalated earlier this month when Elon Musk revealed on his X platform that FEMA had allegedly misused USD 59 million in funds intended for disaster relief to house migrants in luxury hotels, including the Roosevelt. Musk’s claims prompted further scrutiny of the hotel’s lease agreement and added to the pressure for its closure.
As the Roosevelt Hotel once again faces an uncertain future, its story underscores the intersection of hospitality, politics, and social challenges in one of the world’s most dynamic cities. While the hotel’s storied past remains intact, its future role in New York’s hospitality landscape is yet to be determined.
source: The Tribune
