This decision comes amid pressure from supporters of Donald Trump, who criticized the use of taxpayer money for housing asylum seekers.

Owned by Pakistan International Airlines, the hotel has faced scrutiny over American taxpayer funds supporting a foreign government.

On February 25, 2025, New York City Mayor Eric Adams announced the termination of a $220 million contract with the Pakistan-owned Roosevelt Hotel, which had been used as a migrant shelter.

Mayor Adams highlighted that the closure would save taxpayers millions, following a significant drop in migrant arrivals from 4,000 per week at its peak in 2023 to approximately 350 recently.

The Roosevelt Hotel, which was leased to the city in June 2023, had converted its 1,025 rooms into a shelter for tens of thousands of migrants at an estimated cost of $200 per night.

The lease agreement for the hotel was part of a broader $1.1 billion IMF bailout package for Pakistan, aimed at preventing the country from defaulting on its international debt.

The Trump administration had previously frozen $80 million in FEMA funds due to concerns about criminal activity associated with the hotel, which was alleged to be linked to the Venezuelan gang Tren de Aragua.

The future of the Roosevelt Hotel remains uncertain as redevelopment plans are anticipated following the termination of its lease agreement.

Critics, including prominent MAGA figure Vivek Ramaswamy, condemned the arrangement, labeling it as wasteful spending and calling it 'insanity' for a foreign-owned hotel to shelter migrants with U.S. taxpayer funds.

The announcement of the closure was made via a post on social media, reflecting the rising tensions and protests from MAGA supporters regarding the treatment of migrants.

At the height of the migrant crisis in 2023, images of migrants camping outside the hotel fueled public outcry and complaints from Trump supporters about 'illegal immigrants' in 'luxury hotels.'