MCR Hotels has bought the landmark BT Tower in the West End from BT Group for £275m, which it will turn into a hotel.
The hotelier will partner with Camden-based Heatherwick Studio to redesign the 177m-tall tower as a hotel.
BT Group will take a number of years to vacate the premises, owing to the scale and complexity of work to move technical equipment. MCR said there will be “significant time” for design development and engagement with local communities before any proposals come forward.
Payment for the sale will be made over multiple years, as BT Group’s equipment is removed from the building, with final payment on completion of the purchase.
Plans to turn the tower into a hotel have been mooted since 2007, with EG reporting at the time that it had appointed a team of designers to draw up preliminary ideas.
A number of network operations from the Grade II listed tower are now delivered via the group’s fixed and mobile networks. Its microwave aerials were removed more than a decade ago, as they were no longer needed to carry telecommunications traffic from London to the rest of the country.
BT Group said its media and broadcast division, which is based at the site, has already been migrating services onto its cloud-based platform, which will allow “a more straightforward move to more modern and efficient premises”.
The telecoms group has detailed plans to simplify its operations and lower costs across the company, including reducing the number of offices in its estate from more than 300 to around 30.
It sold its former headquarters, BT Centre, EC1, in July 2019 for £210m and moved into a state-of-the-art HQ in 2021 at One Braham, E1. The Tower deal forms part of the group’s strategy to simplify its property portfolio.
Upon completion in 1964, the BT Tower overtook Millbank Tower to become the tallest structure in London until 1980, when it was surpassed by the NatWest Tower.
As well as acting as a hub for the UK’s communication networks, the BT Tower was open to the public until 1971, with a restaurant making use of the revolving top floor. It has been operated by BT Group since 1984, with its top floor regularly hosting corporate and charity events, and its “infoband” screen regularly displaying messages across London.
Brent Mathews, property director at BT Group, said: “The BT Tower sits at the heart of London and we have been immensely proud to be the owners of this important landmark since 1984.
“It has played a vital role in carrying the nation’s calls, messages and TV signals, but increasingly we are delivering content and communication via other means. This deal with MCR will enable the BT Tower to take on a new purpose, preserving this iconic building for decades to come.”
MCR Hotels owns around 150 hotels, including the iconic Eero Saarinen-designed TWA Hotel at JFK Airport in New York City.
Tyler Morse, chief executive and owner of MCR Hotels, said: “We are proud to preserve this beloved building and will work to develop proposals to tell its story as an iconic hotel, opening its doors for generations to enjoy.
“We see many parallels between the TWA Hotel and the BT Tower. Both are world-renowned, groundbreaking pieces of architecture.”
Thomas Heatherwick, founder and design director of Heatherwick Studio, said: “This is an extraordinary building and an amazing opportunity to bring it back to life. We are excited at the prospect of working with Fitzrovia’s residents and with many thousands of Londoners to repurpose this important piece of the city’s living heritage.”
Law firm Addleshaw Goddard advised BT, while Herbert Smith Freehills was the legal adviser for MCR Hotels.
Images © Ismail Merad/Unsplash; BT
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