US terminates $220m Roosevelt Hotel deal
New York City is ending its $220 million lease agreement with the PIA-owned Roosevelt Hotel following intense criticism from some of US President Donald Trump's supporters over the use of American taxpayer money to house asylum seekers.
The iconic hotel in Manhattan was shut down in 2020 due to a severe loss of revenue resulting from the coronavirus pandemic. Three years later, its management signed a lease contract with the New York City which converted it into a shelter for a large number of asylum seekers in the United States.
Facing pressure from both the federal government and right-wing hardliners, Mayor Eric Adams announced the closure of the facility on Monday. The hotel reportedly housed tens of thousands of migrants across its 1,025 rooms at an estimated cost of $200 per night. The city now sees a sharp decline in weekly migrant arrivals, dropping from 4,000 at the peak of the crisis in 2023 to around 350 now.
The Roosevelt Hotel served as a key processing center, handling around 75% of the migrants who arrived in the city. Mayor Adams credited the closure to the administration's successful emergency response and policy decisions, stating that it will help the city save millions of taxpayer dollars.
Earlier this month, Elon Musk tweeted on his owned X platform that his Department of Government Efficiency (DOGE) team uncovered FEMA's illegal $59 million spending to allegedly house illegal immigrants in New York City luxury hotels.
Musk's post detailed how FEMA's actions violated an executive order from President Donald Trump, which restricts FEMA funds to disaster relief efforts.
Musk's team discovered that the $59 million meant for disaster aid was instead used to accommodate illegal migrants in high-end New York City hotels. He further announced that a demand would be made to recoup those funds.
The Roosevelt Hotel, a well-known landmark in New York City, opened its doors in 1924 and has since become a symbol of the city's architectural grandeur.
Located at 45 East 45th Street in Midtown Manhattan, the 19-story building was designed in the Italian Renaissance Revival style by George B. Post & Son. Named after US President Theodore Roosevelt, the hotel has long been a fixture of New York's skyline.
Historically, the Roosevelt has offered various high-end amenities, including a pet kennel, childcare services, and even an in-house doctor. With over 1,200 rooms, the hotel remains a significant part of New York's hotel scene. In 2000, it was fully acquired by PIA, the national airline of Pakistan, which now owns the property.