A US congressional hearing this week saw pointed questions from lawmakers over why a federal agency is involved in redevelopment discussions concerning the Roosevelt Hotel in New York, a landmark property owned by Pakistan’s national carrier.
The issue surfaced during a session of the House Transportation and Infrastructure Subcommittee on Economic Development, Public Buildings, and Emergency Management, where officials were reviewing federal real estate policies. According to news agency IANS, the discussion quickly turned to a memorandum of understanding (MoU) signed between the US General Services Administration (GSA) and Pakistan’s Defence Ministry regarding the Manhattan property.
Lawmakers ask why US agency is involved in foreign-owned property
Democratic Congressman Rick Larsen raised the matter while questioning GSA Administrator Edward Forst, saying the Roosevelt Hotel is owned by Pakistan International Airlines and is not a US government asset.
Larsen asked why an agency that manages federal buildings in the United States would be involved in redevelopment talks linked to a property owned by a foreign government.
“You recently signed an MoU with the Defence Ministry of Pakistan to renovate the Roosevelt Hotel in New York,” Larsen said, according to IANS. “The Roosevelt Hotel, as far as I know, is owned by the Pakistani International Airlines. It is not a property owned by the federal government.”
He further pressed the official on what legal basis allowed the agreement and questioned whether the agency’s mandate had been stretched beyond managing US government properties.
“This doesn’t make any sense,” Larsen told the hearing.
Forst acknowledged signing the MoU but insisted the arrangement does not place any binding obligations on the United States.
“Correct, I did,” he said when asked about the agreement.
He told the panel that Pakistan had first reached out to US officials seeking possible cooperation regarding the property. According to Forst, the approach was made to US Special Envoy Steve Witkoff.
“The government of Pakistan approached Special Envoy Steve Witkoff with the opportunity to collaborate on that property,” he said.
Forst described the agreement as an early-stage discussion rather than a firm commitment.
“This is really a first stage conversation, begin to work together to see if there’s an opportunity that also benefits the US government from a location standpoint,” he said.
Roosevelt Hotel redevelopment remains uncertain
Despite the explanation, Larsen remained unconvinced and argued that the GSA already has extensive responsibilities related to federal real estate management.
He suggested that the agency should focus on handling government-owned properties rather than exploring projects tied to foreign assets.
Forst responded that the agreement had undergone legal scrutiny and said the administration would share both the memorandum and the legal opinion supporting it with the committee.
Asked what obligations the MoU placed on Washington, Forst said the agreement simply commits both sides to continue discussions.
“It obligates us to do nothing, quite frankly,” he said, adding that the parties would work together in good faith to explore options for the site.
He also indicated that any redevelopment plan might not necessarily return the building to its earlier role as a hotel.
“I would not, personally, get held up with the fact that it had been a hotel,” Forst said. “It could be anything upon redevelopment.”
The Roosevelt Hotel, located in Midtown Manhattan, has long been considered one of Pakistan’s major overseas assets. In recent years, however, the property has faced financial difficulties, prompting discussions about redevelopment or repurposing.