NYC's Roosevelt Hotel, Owned by Pakistan, Faces Millions in Unpaid Taxes After Migrant Shelter Operation
The Roosevelt Hotel, a historic Midtown Manhattan landmark owned by Pakistan's national airline, has accumulated significant unpaid taxes and bills despite receiving substantial taxpayer funds for operating as a migrant shelter. According to reports, the hotel owes New York City $13.6 million in overdue property taxes and nearly $1 million in unpaid water bills. This financial shortfall comes after the property pocketed $146.6 million over two years to house migrants, raising concerns about fiscal management and accountability.
Payment Defaults and Ongoing Debts
In September 2023, the Pakistani-owned hotel at 45 East 45th Street entered into a payment agreement with the city's Department of Finance, at which time it already owed $11.6 million. However, Pakistan missed a critical payment of $573,361 due on January 2 and failed to make a half-year payment of $3.9 million. A spokesman for the Department of Finance confirmed that the property is currently in default on its payment plan. The annual property tax bill for the hotel was $7.7 million as of July, highlighting the ongoing financial burden.
Redevelopment Plans and Potential Tax Exemptions
Amid these financial troubles, discussions are underway for a joint venture between Pakistan and the U.S. government to demolish the Roosevelt Hotel and construct an office tower. This redevelopment could trigger a federal tax exemption, as the State Department typically requests such exemptions when foreign governments purchase U.S. property. If the deal proceeds, it might allow Pakistan to avoid future taxes, potentially costing New York City tens of millions of dollars annually. The Department of Finance spokesman noted that while no formal letter has been received in this case, any charges accrued prior to government ownership must still be paid.
Migrant Shelter Operations and Associated Issues
Starting in 2022, the Roosevelt Hotel served as the primary intake center for migrants arriving in New York City, processing more than 173,000 of the 232,000 asylum seekers. From May 2023 through June 2025, the hotel often housed 2,600 migrants per night under a $220 million contract, paying approximately $202 per night per room. However, the facility became overwhelmed, with migrants reportedly sleeping in retail spaces and on sidewalks due to overcrowding.
Security concerns also emerged, as the hotel became a hub for the Venezuelan street gang Tren de Aragua, which organized moped robbery crews from the location, according to Homeland Security officials. Additionally, Jose Ibarra, a Venezuelan illegal immigrant housed at the Roosevelt, left the hotel in September 2023 and less than six months later murdered University of Georgia nursing student Laken Riley. Ibarra is now serving a life sentence without parole.
Broader Context and Ongoing Challenges
The city continues to battle the Trump administration over $80.5 million in FEMA reimbursements that were clawed back on February 11, 2025. Meanwhile, Pakistan is scrambling to sell the Roosevelt Hotel, which has been owned by state-run Pakistan International Airlines since 1999. In late 2023, Pakistan hired real estate firm JLL to solicit bids expected to exceed $1 billion, but JLL withdrew due to conflicts of interest. The potential joint venture with the U.S. government remains in early stages, with only a Memorandum of Understanding signed so far.
Requests for comment from the Pakistani Embassy, the General Services Administration (GSA), the city Department of Environmental Protection, and the Mayor's office went unanswered, leaving many questions about the future of this controversial property unresolved.
