MCR Hotels has acquired the BT Tower from BT Group for £275 million.
Under BT’s ownership since 1984, the Grade II listed communications tower will be transformed into a hotel following completion of the acquisition. 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.
MCR’s portfolio comprises around 150 hotels across the US, with the BT Tower being the first addition in Europe.
Why it matters
The acquisition of the BT Tower by MCR Hotels for transformation into a hotel represents a significant example of adaptive reuse within the hotel investment sector as ESG considerations come more and more to the forefront and ground-up development continues to be challenging.
According to data from Cushman & Wakefield, office to hotel redevelopments accounted for a fifth of the £2.4 billion invested in the hospitality sector in 2023. £500 million of transactions comprised office sites slated to be converted into new hotel accommodation. This trend has continued into 2024. Slatto recently bought an office property in Helsinki from Catella Real Estate for conversion into a 99-key aparthotel, Derag purchased the former US consulate building in Hamburg for €17 million, and Integrity International Group bought Grade II listed Atlas House in London from Hines for £34.55 million for conversion into a hotel.
What they said
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 will partner with Camden-based Heatherwick Studio to consider how best to reimagine its use as a hotel.”
Brent Mathews, property director at BT Group added: “This deal with MCR will enable BT Tower to take on a new purpose, preserving this iconic building for decades to come.”