T
he Roosevelt Hotel site in East Midtown has become a highly sought-after location for commercial developers following the city's announcement that it would relocate migrants from the hotel by June. The property, owned by Pakistan International Airlines (PIA), is expected to be sold for around $1 billion. A developer could potentially build a skyscraper of up to 1.8 million square feet on the site, which would require exploiting recent area rezoning and providing transit and public-space improvements.

    Informal conversations have taken place between PIA's sale agent JLL and developers including Tishman Speyer, Related Companies, SL Green, and Vornado. A new tower could combine offices, a hotel, and retail, but a buyer would need to pay a substantial termination fee to the Hotel Trades Council/Local 6 union even if the project didn't include a hotel.

    PIA is eager to sell the site to alleviate its cash crunch, which has been exacerbated by the lease termination. The Islamabad government is under pressure to meet terms of a $7 billion IMF bailout agreement. A development plan would require navigating multiple stakeholders and regulatory hurdles, making it a complex process that could take three to five years.

    Reopening the Roosevelt as a hotel in the short term is unlikely due to its condition after housing tens of thousands of migrants for nearly two years. The site's potential value has not been officially disclosed, but market sources estimate it could be substantial.