BT Tower sold to North American hotel company for £275m

BT Group has agreed to sell the BT Tower in London's Fitzrovia to MCR Hotels in a £275m deal.

Hotel management company MCR Hotels, said to be the third-largest hotel owner-operator in the US, said it planned to "preserve the BT Tower as an iconic hotel".

The grade II-listed communications tower, which is 189m high, was completed in 1964. In 1971, it was opened to the public and a restaurant was introduced on the top floor.

Since 1984, BT Group has operated the tower, which historically provided network operations through its microwave aerials. In 2014, these were removed and replaced by the group's fixed and mobile networks, as well as other cloud-based platforms.

MCR Hotels was founded in 2006 in Dallas, Texas, and owns around 150 hotels in 37 states and 107 cities, including the Eero Saarinen-designed TWA Hotel in New York City.

It has developed 189 properties under 31 brands, including Hilton and Marriott.

Brent Mathews, property director at BT Group, said: "The BT Tower sits at the heart of London and we've been immensely proud to be the owners of this important landmark since 1984. It's played a vital role in carrying the nation's calls, messages and TV signals, but increasingly we're delivering content and communication via other means. This deal with MCR will enable BT Tower to take on a new purpose, preserving this iconic building for decades to come."

Tyler Morse, chief executive and owner of MCR Hotels, added: "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."

Payment for the sale of the BT Tower will be made in instalments over multiple years, while remaining BT Group equipment will gradually be removed from the building.

Legal advisors to BT on the sale of BT Tower was Addleshaw Goddard. MCR Hotels was advised by Herbert Smith Freehills.

Photo: DrPhee Jummy/Shutterstock