Inside the BT Tower’s transformation into an ultra-luxury hotel

The BT tower was completed in 1964 and rises 189 metres above London – Alexey Fedoren/iStockphoto

For Gavin Patterson, abseiling down the BT Tower remains a memorable highlight of his tenure as chief executive of the telecoms behemoth.

The stunt, performed alongside TV adventurer Bear Grylls, was just one in a string of charity events hosted at the London landmark over the years.

But the BT Tower will now begin a new life as a hotel after BT inked a £275m deal to sell the building to a US-based hotel chain.

Former BT boss Gavin Patterson abseiled down the BT Tower in 2014 – Ant Upton

The skyscraper, initially known as the Post Office Tower, was born of necessity, beginning its life as a critical hub for broadcasting TV and phone signals across the UK.

But as these services shifted to more modern networks, the landmark’s purpose faded from functional to symbolic – and turned into ever more of a headache for BT bosses.

In the modern world, the building’s technological value is limited according to the former BT chairman Sir Mike Rake, who describes it as an “iconic white elephant”.

The Grade-II listed tower in Fitzrovia was completed in 1964 and opened for operations by Prime Minister Harold Wilson the following year, before the public were allowed in by postmaster general Tony Benn in 1966.

For Benn, the project was the sign of a new Britain rising from the ashes of the war – a project as representative of its time as the Elizabeth Tower housing Big Ben.

“Big Ben represents the fussy grandeur of the Gothic revival that epitomised the Victorian imperial affluence, built on the foundation of the first Industrial Revolution,” he said.

“The Post Office Tower, lean, practical and futuristic, symbolises the technical and architectural skill of this new age.”

Rising 189 metres above London, it was the UK’s tallest building until 1980, when it was usurped by the NatWest Tower in the City of London.

The tower was open to the public until 1971 and featured a restaurant on the revolving top floor, which was operated by holiday resort owner Butlin’s.

Public access ended that year when a suspected IRA bomb detonated on the 31st floor. No one was injured in the attack, but the damage took two years to repair. The restaurant closed nine years later in 1980 when its lease expired.

Since 1984, the suite at the top of the tower has been used by BT as corporate hospitality space and for charity events.

In 2009, the tower’s 360-degree LED screen, dubbed the “information band” was launched. It was used to display a countdown to the London 2012 Olympics, as well as to carry messages during national events such as the pandemic.

In recent years the building, which was technically classified under the Official Secrets Act until 1993, has only opened its doors to the public for special events.

In 2015, the revolving restaurant reopened for one night, while in 2018 four guests were given a one-off chance to glamp on the skyscraper’s 34th floor.

Patterson, then BT chief executive, hailed the building as a “unique feat of engineering” on its half-centenary and added: “It has been a working icon of technological innovation for 50 years.”

Behind the publicity stunts, however, was a less glamorous story.

Aside from a sophisticated control room in the lower floors, much of the building has stood empty for years. Its microwave aerials, a key part of the design of the structure, were removed more than a decade ago.

As a result, successive BT bosses have been at a loss with what to do with the landmark.

A 360-degree LED screen, dubbed the ‘information band’, was used to broadcast public messages – GLYN KIRK/AFP

Bosses looked at trying to re-open the restaurant, but this was always vetoed owing to security concerns.

The company has also courted previous takeover interest from Middle Eastern investors, but disagreements over valuation and concerns about the difficulty of removing remaining equipment scuppered any potential deal.

Patterson describes the process as a “massive undertaking”.

“With each chief executive, I’m sure all of us looked at it at one point or another, but it always fell into the ‘too difficult to do’ pile,” he adds,

“I think it’s a good move because ultimately something has to be done with the building. It’s a huge credit for getting the job done.”

As part of the deal, hotel company MCR will make phased payments as leftover equipment is removed from the building.

“The proposal to transform the BT Tower into a hotel shows that new uses can be found for even the most unlikely and iconic listed buildings,” says Henrietta Billings, director of SAVE Britain’s Heritage, which campaigns to find new uses for historic buildings.

“Done right, this could be one of London’s most exciting new destinations. We look forward to seeing the emerging plans with interest.”

The move to sell the tower comes in the first weeks of Allison Kirkby’s tenure as chief executive, though the deal was likely pushed through by finance chief Simon Lowth.

It comes amid broader cost-cutting at BT, which has announced plans to cut 55,000 jobs by the end of the decade in an effort to strip £3bn out of the business.

While £275m is a relatively modest sum for a company the size of BT, the savings on running costs are likely to be significant.

In 2019, BT sold its former BT Centre headquarters for £210m and moved into a new building in Aldgate. It has also set out plans to reduce the number of offices in its estate from more than 300 to around 30.

Bosses are likely to be scrutinising the group’s property portfolio up and down the country, not least former telephone exchanges, for potential sales.

For the BT Tower, the sale promises a new lease of life under the control of MCR Hotels, the third-largest hotel owner in the US, which operates sites including the TWA at JFK Airport and the Sheraton in Times Square.

MCR is led by Tyler Morse, a veteran hotel executive who started his career in the hospitality industry as a baggage handler, ski instructor, busboy and valet.

The company has given little information about its plans for the project, which include a “podium” of buildings covering a full block in addition to the tower.

However, MCR has said it will partner with Heatherwick Studio, the London-based architecture firm behind projects including Coal Drops Yard in King’s Cross and the Vessel structure in New York.

Thomas Heatherwick, the studio’s founder, said it was an “extraordinary building and an amazing opportunity to bring it back to life”.

Naomi Nettleton, real estate partner at law firm Charles Russell Speechlys, says there is a “growing trend of repurposing London’s iconic buildings as hotels”, pointing to the recent opening of Raffles at the Old War Office on Whitehall.

She adds: “The BT Tower is an iconic London building in a prime location, so the proposal to turn it into a hotel is not surprising. Unique architectural buildings as hotels offer robust property fundamentals – whether that be prestige, distinctive design or sense of heritage.”

London is currently enjoying a boom of luxury hotels, where rooms cost £1,000 a night.

The 5-star Peninsula Hotel recently opened close to Hyde Park, while a wave of high-end openings are in the pipelines from brands including the Mandarin Oriental and Claridge’s.

Still, the project is likely to come under scrutiny from heritage and environmental campaigners against the backdrop of fierce debates over developments in the capital.

London Mayor Sadiq Khan recently blocked the MSG Sphere, a huge Las Vegas-style concert venue planned for east London, while Marks & Spencer has launched a High Court battle against Michael Gove’s decision to block the redevelopment of its flagship Marble Arch store.

Catherine Croft, director of the Twentieth Century Society campaign group, describes the BT Tower as a “fabulous building, absolutely exemplifying the technological innovation and ambition of the 60s”.

She adds that conversion to a hotel will be “challenging”, but points to MCR’s previous experience creating huge concrete shells at the TWA at JFK.

A spokesman for MCR said: “MCR is fully aware that the Tower is a listed structure and will have time to consider the right design approach and engage with the local communities, Camden Council, the GLA, Heritage organisations and other stakeholders.”

Ultimately, complex equipment removal and lengthy planning processes mean it may be years before the BT Tower starts its new life as a hotel.

But Londoners will be hoping that, once again, they will be able to dine in a revolving restaurant overlooking the city.

“It’s a stunning asset,” says Croft. “Every city should have one.”

Even if abseiling is out of the picture, the public may soon get a chance to experience those sweeping views across London again.

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