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

BT Group has announced that it will sell the Grade II-listed BT Tower to MCR Hotels for £275m.

The decision comes as the telecommunications group looks to simplify its property portfolio, stating that a number of the network operations that were traditionally carried out at the tower are now delivered by its fixed and mobile networks.

US firm, MCR Hotels, owns around 150 hotels globally, including the TWA Hotel in New York City.

In a statement, BT said that payment for the sale will be made over multiple years, as its equipment is progressively removed from the building, with final payment due on completion of the purchase.

The BT Tower, which stands at 177 metres tall and was opened in 1965, was the tallest building in London until 1981.

However, in recent years, BT has moved several of its operations away from the building, including its media and broadcast division, which was migrated onto a cloud-based platform.

Furthermore, the group has previously outlined plans to simplify its operations and lower company costs, including reducing the number of offices from more than 300 to around 30.

In 2019, BT sold its former headquarters, BT Centre, for £210m, moving to One Braham, Aldgate, in 2021.

Property Director at BT Group, Brent Mathews, said: "[The BT Tower] has 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."

Chief executive officer and owner of MCR Hotels, Tyler Morse, 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."

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