New York City has decided to cancel its $220 million lease with the Roosevelt Hotel, which is owned by Pakistan International Airlines (PIA). The decision came after criticism over the use of public funds to provide shelter for asylum seekers.
The Roosevelt Hotel, which shut down in 2020 due to financial losses, was reopened in 2023 to house migrants sent from Texas. However, concerns were raised about the high cost of using taxpayer money for this purpose.
Mayor Eric Adams announced the termination of the lease, stating that the city’s new policies have helped reduce expenses and save public funds. The decision is part of an effort to manage resources more efficiently.
With the lease now canceled, the future of the Roosevelt Hotel remains uncertain. The move highlights the challenges cities face in balancing humanitarian efforts with financial responsibility.
