Although the technology is no longer required, the tower once served as a number of network operations and antennas for connectivity.
One of London’s most recognizable structures, the BT Tower, will soon be turned into a hotel after BT Group Plc agreed to sell the property to MCR Hotels for £275 million ($347 million).
The tower formerly housed several network operations and connectivity antennas, however the equipment is now obsolete. BT said in a statement on Wednesday that the sale is a component of its strategy to reduce expenses and real estate holdings.
Up until 1980, the London Tower, which stands at 177 meters (581 feet) high, was the city’s highest structure. It was constructed in 1964. Up until 1971, the top floor served as a rotating restaurant. Since 1984, BT has rented out the space for business and charitable gatherings.
Some of the most well-known hotels in New York are managed by MCR Hotels, the third-largest hotel owner-operator in the United States. These hotels include The High Line Hotel and the TWA Hotel at JFK Airport. Through a collaboration with London-based Heatherwick Studio, whose design credentials include the modernized Routemaster bus, the 2012 Olympic Cauldron, and the Vessel sculpture in New York’s Hudson Yards, the firm intends to convert the Grade II listed BT Tower into a hotel.
According to a statement from MCR Hotels, BT will need several years to leave the property because of the intricacy of the job. According to MCR, this will give time for design development and community participation.
The sale occurs in the midst of a dire situation for commercial real estate globally. Between the beginning of 2022 and the end of 2023, the MSCI World Real Estate Index decreased by 18% as a result of rising interest rates and an increase in remote work, which reduced demand for large, centralized workspaces.
Due to limits on overseas travel and the surge in “staycations,” London’s post-pandemic hotel recovery initially trailed behind that of the rest of the UK. Since then, things have gotten better. A research from broker Savills Plc states that in the first five months of 2023, the average daily rate in the city’s hotels increased by 19% due to a rise of vacationers.