A growing homeless encampment has taken root under scaffolding at the shuttered Roosevelt Hotel in Midtown Manhattan, an area just nine blocks east of another large encampment on the West Side. The situation has drawn criticism, with residents and business improvement districts pointing to it as evidence of ineffective city policies.

Two or more individuals have been observed taking up residence this month in front of the Roosevelt Hotel, located on a prime block near Grand Central Terminal. Belongings, including dozens of garbage bags and shopping trolleys, are stored along the building's facade. Neighbors have made at least 14 calls to the city's 311 service since early July regarding the encampment.

Fred Cerullo, president of the Grand Central Partnership business-improvement district, stated that repeated outreach attempts by city agencies have been unsuccessful. He described the situation as "a quality-of-life nightmare, with 20 to 30 bags along the sidewalks," and suggested it shows a lack of compassion for those in need.

The Roosevelt Hotel, a 19-story landmark built in 1924, is part of the historic Terminal City complex developed around Grand Central a century ago. Despite its architectural significance and prominent location, the building has fallen into disrepair since its closure in 2020.

In 2023, the city utilized 1,025 rooms in the hotel as a migrant shelter under a contract with its owner, state-owned Pakistan International Airlines. This arrangement ended last year, and the hotel has remained vacant, with its lobby now obstructed by metal bars and the exterior covered in scaffolding. Graffiti has marked the building's east side for years, and it currently has 79 active violations with the city's Buildings Department, accumulating over a quarter-million dollars in fines.

Advocates argue that the building's potential could be realized through renovations and redevelopment. Basic economics suggest a need for more hotel rooms in Manhattan, as the city has experienced high occupancy rates, often exceeding 90%. The presence of existing retail tenants in the Roosevelt, such as a pizza store and clothiers, indicates a persistent demand for commercial activity.

Additionally, reopening the Roosevelt as a hotel could support union jobs, especially if managed by a large operator like Hilton or Marriott. Preservationists also advocate for its restoration, noting its architectural merit. Peg Breen, president of the New York Landmarks Conservancy, described the Roosevelt Hotel as an "elegant and urbane building" by architect George B. Post that warrants landmark status.