The BT Tower is set to be turned into a luxury hotel, after BT Group agreed to sell the London landmark to MCR Hotels for £275m.

The deal will preserve the future of the Grade II-listed building, as many of the network operations that were traditionally provided from BT Tower are now delivered via BT Group’s fixed and mobile networks.

MCR Hotels, which owns around 150 hotels, including the historic landmark Eero Saarinen-designed TWA Hotel in New York City, said it intends to convert the building to a hotel under yet-to-be-finalised designs by Heatherwick Studio, opening up the tower to the public for the first time since the closure of its rotating restaurant in 1980.

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.”

Brent Mathews, Property Director, BT Group added: “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.”

The conversion of the site, in London’s Fitzrovia, will take time because of the scale and complexity of removing BT’s technical equipment.

An iconic part of the London skyline, the BT Tower 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 became 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, with a restaurant making use of the revolving top floor.