BT Tower to become London landmark hotel in £275m sale

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London’s BT Tower is to be reimagined as a landmark in the capital’s hotel world as part of a £275m deal with US hotel developer MCR Hotels.

The telecoms giant announced on Wednesday (21 February) that the Grade II listed building had been sold as part of a “simplification” of BT Group’s property portfolio.

It’s been more than a decade since the tower became essential for telecommunications traffic from London as network operations went digital and the building’s microwave antennas were removed.

Brent Matthews, property director at BT Group, said: “The BT Tower is located in the heart of London and we are extremely proud to have been the owners of this important landmark since 1984. Increasingly, content and communications are distributed not only through television signals but also through other means.

“This agreement with MCR will enable BT Tower to take on a new purpose and preserve this iconic building for decades to come.”

Prime Minister Harold Wilson opened Britain’s communications hub in 1965, with a revolving restaurant on the top floor, and it remained open to the public until 1971, when an IRA explosion was suspected.

Plans are afoot for the 177-metre-tall building, originally named Post Office Tower, to be preserved as London’s “iconic” hotel. This is the landmark’s first leisure use since the 1970s.

The tower was the city’s tallest structure until 1980, when the 183-metre NatWest Tower (now Tower 42) was built.

“We are proud to preserve this beloved building, telling its story as an iconic hotel and ensuring it will be enjoyed for generations to come,” said Tyler Morse, CEO and owner of MCR Hotels. We will continue to work on developing proposals to open the door for customers.”

MCR already has more than 150 hotels in its portfolio, including the historic TWA Hotel, The Lexington, and The New Yorker.

The hotel company said BT would “take a number of years to vacate the site” due to the complex facilities at the site, and that the contract would need to be paid over multiple years.