NEW YORK, Aug 12: Pakistan International Airlines Task Force, formed to explore the possibility for selling off the hotels owned and run by the PIA Investments, is scheduled to arrive in New York on Aug 24, to appoint an adviser to sell Roosevelt Hotel here.
The task force, which has already received bids from various investment consultants, has also been entrusted to sell off Hotel Scribe in Paris and Minhal Hotel in Riyadh.
The task force, it was learnt, had been appointed to make the whole process transparent and above board because in the past the previous governments had tried to appoint their chosen investment consultants with a view to benefitting from such deals.
The investment adviser appointed by the task force will explore the possibilities of selling off the Hotel Roosevelt to the highest bidder. But the sale of the hotel and its implications will then be assessed by the board of the parent company, PIA Investment, before any final decision is made.
Similarly, the body will also appoint advisers for the Hotel Scribe and Minhal Hotel.
PIA Investments Managing Director Aslam R. Khan, who spearheaded acquisition of Roosevelt Hotel and Hotel Scribe told Dawn: “I think its the right thing to do at this time. I have personally recommended that PIA divests itself from all hotel properties owned by it so that the profit made through such sale could be used by the airline to buy new aircrafts,” he added.
The combined value of the hotels owned by the PIA Investments remains more than half a billion dollars.
The Roosevelt Hotel in New York, since its renovation in 1997, is running at 75 per cent capacity and earning the PIA Investments over $1 million a month to service various collateral loans taken against it.
The Hotel Scribe in Paris, the only five star hotel in the city, is also running at full capacity. It has two star rating from the Micheleon Rating Group.
The task force comprises Lt-Gen Ashraf Chowdhry, Defence Additional Secretary Ahmed Waqar, privatization secretary, two Saudi partners — Prince Faisal, M. Hajjaj — and John Alexander.