'Nuts': Vivek Ramaswamy lambasts NYC's $220M deal with Pakistan-owned hotel
What's the story
United States Republican and entrepreneur Vivek Ramaswamy has reacted to reports that New York City is paying $220 million to lease the Roosevelt Hotel in Manhattan, a property owned by Pakistan International Airlines (PIA).
The PIA is a state-owned entity of Pakistan.
"A taxpayer-funded hotel for illegal migrants is owned by the Pakistani government which means NYC taxpayers are effectively paying a foreign government to house illegals in our own country. This is nuts," he wrote on X.
Criticism voiced
US Republican criticizes NYC's hotel lease agreement
His remarks came after author John LeFevre first highlighted the matter on X.
According to LeFevre, the deal is part of a larger $1.1 billion International Monetary Fund (IMF) bailout package aimed at preventing Pakistan from defaulting on its international debt obligations.
"Prior to this sweetheart deal, the hotel had been closed since 2020, having long-struggled with occupancy and in dire need of renovation," he wrote.
Hotel repurpose
Roosevelt Hotel's new role and revenue prospects
The Roosevelt Hotel, which has remained closed since 2020 due to low occupancy rates and renovation needs, is now being used as accommodation for undocumented immigrants.
This is under a three-year lease agreement that New York City has signed with the hotel.
The deal is expected to bring in a lot of money for the Pakistani government over its duration.
Contract disclosure
Pakistani official confirms contract details
Pakistan's Minister of Railways and Aviation, Khawaja Saad Rafique, has confirmed that a contract for 1,250 rooms was signed.
He added that the hotel would be returned to Pakistan once the lease period ends.
"The lease agreement is expected to generate revenues to the tune of around USD 220 million for the Pakistan government," Rafique announced in July.