New York City ends $220m lease of PIA's Roosevelt Hotel

New York City will end its $220 million lease for the Roosevelt Hotel, which has been used as a migrant shelter, Mayor Eric Adams announced on Monday.

The hotel, owned by PIA, was converted into a shelter three years after it closed in 2020 due to significant revenue losses during the COVID-19 pandemic.

The decision follows mounting pressure from federal authorities and criticism from some supporters of former President Donald Trump over the use of taxpayer funds to house asylum seekers.

The closure of the Roosevelt Hotel is part of a broader initiative that includes shutting down 53 other migrant shelters, such as a large tent facility on Randall’s Island slated to close at the end of the month.

Adams stated that the move is expected to save millions of dollars and represents progress in the city’s efforts to manage its migrant intake more efficiently.

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The iconic hotel, located in midtown Manhattan near Grand Central Terminal, had served as a key processing center for asylum seekers, housing tens of thousands of migrants in its 1,025 rooms at an estimated cost of $200 per night.

Migrant arrivals have dropped from about 4,000 per week at their peak to 350, contributing to projected savings of over $5 billion in the next three fiscal years.