Pakistan's Roosevelt Hotel Owes $13.6M in Back Taxes After $146M Migrant Housing Deal

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The Pakistani government-owned Roosevelt Hotel in New York City pocketed $146.6 million to house migrants for two years, but now owes $13.6 million in overdue property taxes and nearly $1 million in unpaid water bills. A potential deal with the U.S. government to redevelop the Midtown landmark into a skyscraper could allow Pakistan to avoid all future taxes, potentially costing the city tens of millions annually.

Why it matters

The Roosevelt Hotel's unpaid taxes and potential future tax exemption highlight concerns about foreign governments exploiting U.S. resources while avoiding their civic responsibilities. This case raises questions about accountability and fairness in how the city manages migrant housing contracts and property tax collections, especially from foreign-owned entities.

The details

The Pakistani-owned Roosevelt Hotel signed a payment agreement with New York City's Department of Finance in 2023, owing $11.6 million. But despite receiving millions from taxpayers to house migrants, Pakistan has failed to make $573,361 and $3.9 million payments. The hotel's annual property tax bill is $7.7 million. A potential joint venture between Pakistan and the U.S. government to demolish and redevelop the Roosevelt could trigger a federal tax exemption, potentially costing the city tens of millions per year.

• In September 2023, the Roosevelt Hotel signed a payment agreement with the city's Department of Finance when it already owed $11.6 million.
• On January 2, 2024, the hotel missed a $573,361 payment due.
• In July 2024, the hotel's annual property tax bill will hit $7.7 million.

What’s next

The potential joint venture between Pakistan and the U.S. government to redevelop the Roosevelt Hotel is still in the early stages, with only a Memorandum of Understanding signed so far.