21
February 2024
BT Group announces sale of BT
Tower to MCR Hotels
BT Group has agreed to the sale of
the BT Tower for £275m to MCR Hotels, who plan to preserve BT Tower
as an iconic hotel, securing its place as a London landmark for the
future.
As the UK heads rapidly into an
all-digital future, a number of network operations that were
traditionally provided from BT Tower are now delivered via BT
Group's fixed and mobile networks. For example, the
Tower's 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.
The BT Tower has long been an
important site for BT Group's Media & Broadcast business, as
one of the key global interchange points for live television. As
part of its long-term strategy, the Media & Broadcast division
has already been migrating services onto its cloud-based platform,
which will allow a more straightforward move to more modern and
efficient premises. This will enable the division to continue to
sit at the heart of UK and global media distribution.
Brent Mathews, Property Director, 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, CEO 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."
MCR Hotels own around 150 hotels,
including the historic landmark Eero Saarinen-designed TWA Hotel in
New York City. Payment for the sale will be made over multiple
years, as BT Group equipment is progressively removed from the
building, with final payment on completion of the
purchase.
Notes to editors:
The BT Tower is a grade II listed
communications tower located in Fitzrovia, London. An iconic part
of the London skyline, the main structure is 177 metres (581 ft)
high, with a further section of aerial rigging bringing the total
height to 189 metres (620 ft). Upon completion in 1964, it overtook
the Millbank Tower to become the tallest structure in London until
1980, when it was surpassed by the NatWest Tower.
BT Tower was opened for operations in
1965 by Prime Minister Harold Wilson. As well as acting as a hub
for the UK's communication networks, BT Tower was open to the
public until 1971, with a restaurant making use of the revolving
top floor. Since 1984, BT Tower has been operated by BT Group, with
its top floor regularly hosting corporate and charity events, and
its "infoband" screen regularly displaying messages across
London.
BT 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. The company, in a separate deal, sold its
former headquarters, BT Centre, in July 2019 for £210 million and
moved into a state-of-the-art HQ in 2021 at One Braham, Aldgate.
The Tower deal forms part of the simplification of BT Group's
property portfolio.
- Ends -
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About
BT Group
BT Group is the UK's leading provider
of fixed and mobile telecommunications and related secure digital
products, solutions and services. We also provide managed
telecommunications, security and network & IT infrastructure
services to customers across 180 countries.
BT Group consists of three
customer-facing units: Consumer serves individuals and families in
the UK; Business covers companies and public services in the UK and
internationally; Openreach is an independently governed, wholly
owned subsidiary wholesaling fixed access infrastructure services
to its customers - over 650 communications providers across the
UK.
British Telecommunications plc is a
wholly owned subsidiary of BT Group plc and encompasses virtually
all businesses and assets of the BT Group. BT Group plc is listed
on the London Stock Exchange.
For more information,
visit www.bt.com/about