New York City cancels $220m migrants deal with PIA’s Roosevelt Hotel.
New York City is officially ending its $220 million lease agreement with the PIA-owned Roosevelt Hotel, which had been serving as a migrant shelter, following intense criticism from some of US President Donald Trump’s supporters over the use of American taxpayers’ money to house asylum seekers.
The historic hotel in Manhattan was closed in 2020 due to a severe loss of revenue resulting from the coronavirus pandemic.
Three years later, its management signed a lease contract with New York City, which converted it into a shelter for a large number of asylum seekers in the United States.
Mayor Eric Adams, after facing pressure from both the federal government and right-wing hardliners, 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 approximately 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.
The hotel, which opened in 1924, was named after President Theodore Roosevelt. It is located next to the Grand Central Terminal, the main train station.
