Interior Minister Mohsin Naqvi says the government has taken possession of the building after the federal cabinet approved a joint investigation team’s report. Authorities plan to convert the property into a five-star hotel within the coming months.
ISLAMABAD, PAKISTAN — WEB DESK: The Pakistani government plans to convert Islamabad’s One Constitution Avenue building into a five-star hotel within the coming months after taking possession of the property, Interior Minister Mohsin Naqvi announced on Wednesday.
Speaking at a press conference in Islamabad, Naqvi said the federal cabinet had approved the Joint Investigation Team (JIT) report concerning the controversial project, paving the way for the government to take control of the building.
He said the government intended to restore the property’s original purpose as a hotel, adding that Islamabad faced a shortage of quality hotel accommodation.
Government plans to bring in international hotel operator
Naqvi said the government would have the building’s value assessed by a multinational company before moving forward with the hotel project.
He explained that the government did not intend to operate the hotel itself and would seek an agreement with a major hotel chain to manage the property.
The interior minister expressed hope that the conversion could be completed within the next few months. However, he did not announce a selected hotel operator, a confirmed investment amount or a specific opening date.
JIT report approved by federal cabinet
The interior minister said the cabinet had approved the JIT report after the government had waited for its findings.
He also said the government would ensure that people affected by the project received compensation for their payments, adding that the authorities would assess the amounts due.
According to reports on the cabinet-approved investigation, recommendations include re-auctioning the project and referring relevant aspects of the case to the National Accountability Bureau (NAB) for further investigation.
Naqvi also blamed irregularities within the Capital Development Authority (CDA) for allowing government land to be encroached upon. He said the government would continue recovering state land and would not make exceptions for influential individuals.
Background: Controversy over the original hotel project
One Constitution Avenue, also associated with the Grand Hyatt project, was originally planned as a five-star hotel under a 2005 agreement between the CDA and developer BNP (Private) Limited.
However, the project was subsequently developed as a luxury residential and commercial complex rather than operating as the originally planned hotel.
The dispute centred on the developer’s financial obligations and the cancellation of the property’s lease. The CDA argued that the developer had failed to meet its payment commitments.
In May 2026, the Islamabad High Court upheld the CDA’s decision to cancel the lease. The matter subsequently remained subject to further legal proceedings, including appeals concerning the building’s occupants.
Government also targeting other encroachments
Naqvi said the government was taking action against illegal occupation of public land in different parts of Islamabad.
He specifically mentioned sectors C-14, C-15 and C-16, saying the authorities were working to recover government land.
He added that the government’s objective was not simply to conduct anti-encroachment operations but to ensure that the action reached its legal conclusion.
The proposed hotel conversion now depends on the next administrative and commercial steps, including the valuation of the property and selection of an operator.
