New York City has leased for $220 million the Roosevelt Hotel, a historic Manhattan property owned by Pakistan International Airlines, a government-controlled entity of Pakistan. The three-year contract involves using the hotel’s 1,200 rooms to house undocumented migrants. This lease is expected to significantly help Pakistan’s recovery from its financial crisis.
“A taxpayer-funded hotel for illegal migrants is owned by the Pakistani government, which means NYC taxpayers are effectively paying a foreign government to house illegals in our own country. This is nuts.” Prominent Republican and entrepreneur Vivek Ramaswamy, expressing strong disapproval of the deal, speaking out on social media.
Comments came in from Ramaswamy after author John LeFevre brought to the attention of netizens his knowledge about the said deal as reported on the X social media network. He said: “The city of New York pays $220 million to rent the whole of the Roosevelt Hotel in Manhattan for accommodating illegal immigrants. It’s owned by Pakistan’s government and was under a bailout of $1.1 billion in IMF financing to ensure that Pakistan cannot default internationally.
The Roosevelt Hotel, closed since 2020 due to financial struggles and the pandemic, reopened solely for this lease deal. Before its current use, the hotel had struggled with low occupancy and needed extensive renovations.
A taxpayer-funded hotel for illegal migrants is owned by the Pakistani government which means NYC taxpayers are effectively paying a foreign government to house illegals in our own country. This is nuts. https://t.co/Oy4Z9qoX45
— Vivek Ramaswamy (@VivekGRamaswamy) December 1, 2024
Pakistan’s Financial Context
This includes leasing the Roosevelt Hotel of Pakistan as part of addressing economic challenges in Pakistan. “This is an initial response where revenues of approximately $220 million can be generated by the government of Pakistan; there was a signing for 1,250 rooms,” said Pakistan’s minister for Railways and Aviation Khawaja Saad Rafique while speaking during a media talk. After expiration, this three-year period of term, it will automatically be returned to the Pakistan government.
This deal is closely related to a $1.1 billion International Monetary Fund (IMF) bailout that is meant to stabilize Pakistan’s economy and avoid debt default.
History Of The Hotel And Reopening
Known for being named after former U.S. President Theodore Roosevelt, the 19-story Roosevelt Hotel has been a staple in Manhattan for many decades. The property closed its doors back in 2020 because of mounting financial losses and had since remained unused until New York City’s recent lease agreement. Its reopening has reignited debates over using taxpayer funds to house migrants, especially in a property benefiting a foreign government.
Former President Donald Trump has assigned the newly formed Department of Government Efficiency to the offices of Vivek Ramaswamy and Elon Musk, CEO of Tesla. The goal is to eliminate wasteful spending in government spending.
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