It was the lockdown orders and cessation of vacation travel of 2020 that killed it off, but it had become a tired, 3-star property primarily catering primarily to large convention and bus tour groups as well as more budget-conscious business travelers. It was perfectly serviceable with a good midtown location and an illustrious history, but definitely showing signs of age. It had a large lobby lounge that made a good place for drinks after shopping on Fifth Avenue or at Brooks Brothers and other Madison Avenue fashion houses which were within two blocks. It trailed other properties of similar size in amenities and probably needed a multimillion-dollar reno. If the wrecking ball comes, it will be another landmark lost, but that's what happens in a city that's basically under constant reconstruction.
I stayed at the Roosevelt a few times - most recently maybe 7 years ago. It was in need of a renovation, but wasn't run-down like the Hotel Pennsylvania (also scheduled to be torn down). There is a lot of new development planned around Grand Central, and there were stories about a possible redevelopment of the Roosevelt site even before covid. Renovation, unless the structure was completely gutted, wouldn't fix the problem of really small rooms (by modern standards).