ISLAMABAD: A parliamentary panel on Monday the directed the management of Pakistan International Airlines (PIA) not to enter into any lease agreement regarding the Roosevelt Hotel in New York, USA.

The National Assembly Standing Committee on Parliamentary Affairs, led by its Chairperson Dr. Shezra Mansab Ali Khan Kharal, expressed its reservations over reports that the PIA management was leasing out the profitable Roosevelt Hotel in New York for 30-40 years.

Acting Chairman, PIA Irfan Elahi briefed the committee about the profits made by Roosevelt Hotel during the last year which was $96.450m.

He said the Aviation Division has no plan to sell the Roosevelt Hotel.

`The Committee showed annoyance on the proposal (of leasing out Roosevelt) and strongly recommended that Roosevelt Hotel should not be given on lease at any cost. The Committee also decided to invite CEO, PIA to brief the Committee about the suspension/cancellation of flights/routes to New York, USA,` read an official pressrelease issued by the National Assembly Secretariat.

Later, talking to Dawn, the acting chairman stressed, `There is no plan to sell the Roosevelt Hotel.

He went on to add, `As far as lease is concerned, the issue was raised by the committee itself and I told them that there was an option that the hotel could be given on lease for 30 years.

However, there is no plan under discussion for leasing out hotel.

The acting chairman, however, said that various options are being `explored` for better utilisation of the hotel building.

The PIA-owned 19-storey hotel with 1,025 rooms plus allied facilities in New York city is considered a valuable property that also carries cultural significance for Pakistan. It has remained in news for the last several years for its proposed auction. However, the management of PIA always rejected the claims of auction etc.

The said hotel was acquired by PIA Investment Limited on lease during the year 1979 with an option to purchase the property.

PIA had purchased the hotel against US$36.5 million on against the demand of $59.5m by contesting a law suit against the owner in 1999. The interstate Hotel and the Resort is managing the Roosevelt Hotel since 1997.