Jones Lang LaSalle (JLL), the global real estate advisory firm appointed to steer the privatisation of the Roosevelt Hotel in New York, has stepped down from its advisory role, citing a potential conflict of interest, the Privatisation Commission announced on Thursday.
In a formal communication to the government, JLL conveyed its decision to resign from the assignment and offered to return all fees received during its engagement.
The company attributed its withdrawal to increasing interest in the Roosevelt Hotel from its own clients, following the termination of the property’s lease agreement with New York City.
JLL had been appointed as Financial Advisor in January 2024 through a competitive process and was tasked with conducting due diligence and developing transaction structure reports for the proposed privatisation of the historic hotel, owned by Pakistan International Airlines Investment Limited (PIAIL).
“JLL has cited heightened interest in Roosevelt Hotel from many of its own clients… [which] has put them in a compromising position,” the commission said, adding that the firm chose to resign “to avoid any perceived or actual conflict of interest.”
In light of JLL’s resignation, the Privatisation Commission said it has initiated the process of hiring a new Financial Advisor on a fast-track basis to ensure continuity of the transaction.
The commission emphasized that the new appointment will build upon the preparatory work already carried out and that the privatisation process will continue in a “transparent and competitive manner.”
The government reaffirmed its commitment to expeditiously conclude the Roosevelt Hotel privatisation, adhering to all legal and regulatory requirements.
The Roosevelt Hotel, located in Manhattan, has long been at the center of privatisation debates in Pakistan, with successive governments considering various options for its future amid fluctuating real estate market dynamics in New York City.
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