Vivek Ganapathy Ramaswamy - Indian-American entrepreneur and a nominee for the incoming administration of US President-elect Donald Trump- has sparked a heated debate over the lease of the Roosevelt Hotel, owned by Pakistan International Airlines (PIA), to New York City.
In a statement that many have deemed politically charged and misleading, Ramaswamy claimed that New York taxpayers were effectively paying the Pakistani government $220 million to house illegal immigrants in the iconic hotel.
The Roosevelt Hotel, a historical landmark in the heart of Manhattan, has been closed since October 2020 due to the COVID-19 pandemic’s devastating impact on the hospitality industry and the broader financial challenges facing Pakistan’s national carrier, PIA.
However, in an effort to mitigate mounting financial liabilities, including $25 million in unpaid taxes, PIA Investment — a semi-governmental corporation — leased the property to New York City for a three-year period, beginning May 15, 2023. Under the terms of the lease, the city is paying $210 per room per night for the 1,025-room hotel, which will be used to house migrants, offering essential services such as vaccinations and food.
Ramaswamy, who is slated to co-lead the new Department of Government Efficiency with tech mogul Elon Musk, took to social media to express his outrage, accusing the New York City government of engaging in a “taxpayer-funded hotel for illegal migrants” deal with the Pakistani government.
His post, shared on X (formerly Twitter), read: "This is nuts," as he suggested that the city's taxpayers were essentially subsidising the housing of illegal immigrants in a foreign-owned property.
The controversy stems from Ramaswamy’s apparent misinterpretation of the lease agreement. Although his claim that the Pakistani government benefits from the lease is technically true, the financial reality is far more nuanced.
The Roosevelt Hotel’s lease agreement generates approximately $18 million for PIA Investment over the three years, far below the headline figure of $220 million, which is the total lease cost over the entire duration.
Critics of Ramaswamy's statement argue that it overlooks key details about the broader context of New York's migrant housing program, which has also involved the rental of over 100 other hotels — many of them owned by foreign entities, including the Indian Taj Group and Air India. These hotels, including the Roosevelt, have been repurposed to fulfill the city's pressing need for 14,000 rooms to accommodate the influx of migrants.
While Ramaswamy’s criticism has ignited a firestorm, it also raises questions about the intersection of local government spending, international property ownership, and the ongoing challenges surrounding migration.
The lease agreement, though controversial, is part of New York City’s broader strategy to address its housing shortage amid a sharp increase in migrant arrivals, particularly following the end of pandemic-era restrictions.
Ramaswamy, a prominent figure in the Republican Party who ran for president in 2024, has yet to officially assume his new role. His position, designed to improve federal government operations, is not directly concerned with local or municipal contracts.
