Infamous Midtown migrant hotel dubbed the ‘New Ellis Island’ has a new offer on the table for redevelopment

New York Post - May 2nd, 2025

The Roosevelt Hotel, a historic New York City landmark often described as the “New Ellis Island,” is at the heart of a new redevelopment proposal. Shahal Khan’s Burkhan World Investments, along with its partners, has proposed constructing a tower on the 42,000-square-foot site of the now-shuttered hotel. The plan offers the current owner, Pakistan’s PIA Holding Co., a 50% stake in the joint venture. The proposed tower could reach up to 1.3 million square feet, rivaling significant NYC structures like Central Park Tower. This development comes after the hotel transitioned from a pandemic closure in 2020 to serving as a major intake center for migrants, before shutting down its shelter operations in February 2023. The proposal awaits a decision from Pakistan’s Cabinet Committee on Privatisation.

The redevelopment of the Roosevelt Hotel holds significant implications for both the local and international community. Once a bustling hotel, it became a vital resource for migrant services, sheltering over 173,000 individuals before its closure. The potential transformation into a commercial tower aligns with Midtown Manhattan’s development trends, surrounded by prominent skyscrapers. If approved, the joint venture could rejuvenate the site while allowing Pakistan’s PIA to benefit financially. This proposal highlights the ongoing evolution of urban real estate, the impact of city policies on property use, and the complex international ties linked to such iconic locations.

New York City Roosevelt Hotel Migrant Shelter Real Estate Development Shahal Khan Burkhan World Investments Pakistan International Airlines Pia Holding Co.

Story submitted by Fairstory

RATING

7.4

Fair Story

Consider it well-founded

The article provides a largely accurate and timely account of the redevelopment proposal for the Roosevelt Hotel, supported by credible sources. It effectively highlights the potential economic benefits and historical significance of the site, engaging readers interested in real estate and urban development. However, the article could benefit from a more balanced presentation of perspectives and greater transparency in its claims. While it raises important issues of public interest, it stops short of exploring the broader implications and potential controversies in depth. Overall, the article is well-written and accessible, but it could be enhanced by providing additional context and exploring opposing viewpoints.

Accuracy

The story is largely accurate, with most of its claims verifiable through reliable sources. It reports the redevelopment proposal for the Roosevelt Hotel by Burkhan World Investments, including the 50% stake retention by PIA and the 99-year lease terms, which aligns with Bloomberg's reporting. However, specific financial terms and exact zoning allowances are not detailed in the article, leaving some areas needing further verification. The claim about the Roosevelt Hotel's closure as a migrant shelter in February 2025 is confirmed by NYC.gov, but the exact closure date is not specified. Overall, the article presents a truthful account, though it lacks precision in some areas that require further detail.

Balance

The article provides a reasonably balanced view of the redevelopment proposal, presenting both the potential benefits and the ongoing challenges. It highlights the historical significance of the Roosevelt Hotel and the economic implications of the redevelopment plan. However, it predominantly focuses on the perspective of Burkhan World Investments and the potential benefits for PIA, with less emphasis on the potential community impact or opposition. The lack of comments from PIA's advisor, JLL, and other stakeholders such as local government officials or community representatives, suggests a slight imbalance in the presentation of viewpoints.

Clarity

The article is well-structured and uses clear language, making it easy to understand. It logically presents the sequence of events, from the hotel's closure and reopening to the current redevelopment proposal. The tone is neutral, and the information is presented in a straightforward manner. However, the article could enhance clarity by providing more background on the historical significance of the Roosevelt Hotel and the broader context of the New York City real estate market. Overall, the article is clear and accessible but could benefit from additional context for a more comprehensive understanding.

Source quality

The article relies on credible sources such as Bloomberg and NYC.gov, which are reputable and authoritative in financial and local government reporting, respectively. These sources enhance the reliability of the information presented. However, the article cites a Burkhan representative without naming them, which could affect the credibility of that particular claim. The inability to reach PIA's advisor, JLL, for comment also leaves a gap in source verification. Overall, the source quality is strong, but the article could benefit from a wider variety of perspectives and direct quotes from involved parties.

Transparency

The article provides a clear account of the redevelopment proposal and its potential implications, but it lacks detailed context about the methodology behind the claims. For instance, it does not explain how the 1.3 million square feet figure was calculated or the specifics of the air rights acquisition. Additionally, while it mentions the role of the Pakistan government and PIA, it does not delve into potential conflicts of interest or the decision-making process within the Cabinet Committee on Privatisation. The article could improve transparency by disclosing more about the basis for its claims and any potential biases in its sources.