New York’s grand old downtown landmark — owned by Pakistan’s national airline — has received hundreds of millions of taxpayer dollars to house migrants. Now, city officials say the same property has defaulted on millions in unpaid property taxes and water bills, even as talk mounts of a redevelopment deal that could shield it from future taxes altogether.The Pakistani state-owned Roosevelt Hotel in midtown Manhattan owes New York City $13.6 million in back property taxes and about $1 million in unpaid water bills, after receiving $146.6 million to operate the hotel as a migrant shelter for two years, The Post reported.The Pakistani-owned hotel at 45 East 45th St. A repayment agreement was made with the city’s Department of Finance in September 2023, when it was already owed $11.6 million.
But Pakistan defaulted on a $573,361 payment due on January 2, and has not made its semi-annual $3.9 million payment, despite taxpayers paying millions to house the migrants.A Ministry of Finance spokesperson confirmed, “This property is currently in default on its payment plan.”The hotel’s annual property tax bill was $7.7 million in July of this year.A joint project between the Pakistani government and the US government to demolish the Roosevelt Hotel and build an office tower could result in a federal tax exemption, as the State Department typically requires the Treasury Department to grant this exemption when a foreign government purchases American real estate.
The Washington Post reported that an agreement with federal authorities to redevelop the landmark into a super-tall skyscraper could allow Pakistan to avoid future taxes, which could cost the city tens of millions annually.“We have not received a letter in this case,” a Finance Ministry spokesman said. “However, any fees due must be paid before government ownership.”Roosevelt served as the main reception center for migrants arriving in the city starting in 2022, processing more than 173,000 of the country’s 232,000 asylum seekers.
The hotel often housed 2,600 migrants per night from May 2023 to June 2025, under a $220 million contract that paid about $202 per night per room.The report said the hotel had become overcrowded with migrants, with migrants sleeping in retail spaces and on sidewalks.The Roosevelt Hotel became a hub for the Venezuelan street gang Tren de Aragua, which organized motorcycle theft crews out of the hotel, according to Homeland Security officials.Jose Ibarra, another illegal Venezuelan staying at the Roosevelt, left the hotel in September 2023 and less than six months later killed University of Georgia nursing student Lakin Riley. Ibarra was serving a life sentence without parole.The city was still fighting the Trump administration to obtain $80.5 million in FEMA reimbursements that were recovered on February 11, 2025.Pakistan has been scrambling to sell the Roosevelt plane, which has been owned by state-run Pakistan International Airlines since 1999.
It hired real estate firm JLL in late 2023 to solicit bids expected to exceed $1 billion, but JLL withdrew due to a conflict of interest.The potential joint venture with the US government remains in its early stages, and only a memorandum of understanding has been signed.The Pakistani Embassy, GSA, the city’s Department of Environmental Protection and the Mayor’s Office did not respond to requests for comment.
