BT Group announces sale of iconic BT Tower to MCR Hotels for £275m

TAGS

BT Group has finalized a landmark agreement for the sale of the BT Tower for £275 million to MCR Hotels, paving the way for the iconic building’s transformation into a hotel and ensuring its preservation as a key London landmark for future generations. The transition reflects the UK’s swift move towards a fully digital future and BT Group’s strategic shift in delivering services.

Traditionally, the BT Tower played a pivotal role in BT Group’s network operations, including being a critical site for the Media & Broadcast business. However, advancements in technology and the shift to cloud-based platforms have reduced the building’s operational necessity. Brent Mathews, Property Director at BT Group, emphasized the tower’s importance in London’s skyline and BT Group’s pride in owning the landmark since 1984. He expressed satisfaction that the deal with MCR will give the BT Tower a new lease on life, aligning with modern communication means.

See also  Balfour Beatty bags £50m contract for Piccadilly line upgrade

Tyler Morse, CEO and owner of MCR Hotels, expressed excitement about the acquisition, committing to preserving the building’s storied history as it transitions into an iconic hotel. Known for owning approximately 150 hotels, including the historic TWA Hotel in New York City, MCR Hotels plans to develop the BT Tower to share its story with future generations. The payment structure for the sale is set to occur over multiple years, accommodating the gradual removal of BT Group equipment from the site.

BT Group to sell iconic BT Tower to MCR Hotels for £275m

BT Group to sell iconic BT Tower to MCR Hotels for £275m

The BT Tower is not only a prominent feature of London’s skyline but also a structure of historical significance. Completed in 1964, it became London’s tallest structure until 1980. Its importance extends beyond architecture, having served as a communications hub and a public attraction until 1971. The building’s “infoband” screen and use for corporate and charity events have made it a notable point of interest in the city.

See also  Dunelm Group reports strong interim results with 4.5% sales growth in H1 FY24

The sale is part of BT Group’s broader strategy to simplify its operations and reduce costs, including consolidating its office estate. This move follows the sale of its former headquarters, BT Centre, and the transition to a new state-of-the-art headquarters at One Braham, Aldgate, in 2021. The BT Tower deal marks a significant step in BT Group’s efforts to streamline its property portfolio while preserving its historical assets for future use.

CATEGORIES
TAGS
Share This