The PIA's CCO has said that PIA's Rosevale Hotel in New York is not being sold but will remain closed until December 31 for renovations and future utility projects, the hotel inspected by Messrs. Deloitte. Has a current market value of 662 million (Rs. 662 million).
A meeting of the Senate Standing Committee on Aviation was held under the chairmanship of Senator Mushahidullah Khan. The privatization commission was approached by the government to consider all available options, including demolition of the building and construction of a new building or renovation of the existing premises, he said, adding that a decision on renovation would be taken later. Either the repair work will be done or the existing building will be demolished for reconstruction and a new high-rise hotel will be built for which local laws are favorable. The meeting called for turning PIA into a for-profit institution. The project was also briefed.
The 19-story Roosevelt Hotel, located in New York, was acquired in 1978 on the basis of its own profit-sharing partnership and was part of PIA's diversification strategy. He acquired 100% of the shares for36.5 million (65 36.5 million) without any resources or support from the government.
He told the meeting in a briefing that the property has more than a thousand rooms covering an area of 43,313 square feet and is operated by the world's best hotel management company, America's Interstate Hotels and Resorts. The current market value of the hotel examined by Messrs. Deloitte is 2 662 million ( 662 million).
Due to debt, union problems, dilapidated building, infrastructure, rooms and the condition of public areas, the financial condition of the hotel was basically very bad and the hotel needed to be repaired and upgraded, PIA said. The chief executive officer said the corona virus epidemic had further affected the hotel business and could cost up to 60 6 million a year. He also said that PIA was operating 13-year-old aircraft while others Airlines operate 3-year-old aircraft.
The meeting was attended by Senators Manzoor Ahmed Kakar, Syed Muzaffar Hussain Shah, Mohammad Asad Ali Khan Junejo, Noman Wazir Khattak, Sajjad Hussain Turi, Mohammad Khalid Hussain Bizenjo and senior officials of Aviation Division and PIA.
