New York: New York City Mayor Eric Adams has announced that the shelter for refugees at the Roosevelt Hotel will close in June 2025, a year before the original contract expired.
The hotel opened in 1924 and was named after US President Theodore Roosevelt. The hotel, owned by Pakistan International Airlines (PIA), is located near New York’s Grand Central Terminal.
In 2023, a three-year contract worth $220 million was signed between New York City and PIA, under which the building was to be used as a shelter for refugees until 2026.
New York has seen a significant decline in the arrival of new refugees, which has decreased from 4,000 people weekly in 2023 to 350 people per week. The decision to turn the hotel into a shelter was reconsidered after intense criticism from Republican politicians and the business community.
New York is facing cuts in federal funding, making it increasingly difficult to care for refugees.
The premature termination of the contract could hit PIA’s expected revenue, which is already struggling financially.
The hotel has suffered damage from the presence of refugees in the past year, which could cost more to repair. New York City officials have indicated they will take responsibility for repairs, but it is unclear who will bear the costs.
After the announcement of the early termination of the contract, negotiations are set to begin between Pakistani and New York officials on the future of the hotel.
