Presumably parking space would be a big issue - depends how big the hotel is. The Harvester site in SE22 was the perfect site for a pub/eatery. Until it went afire. Anyone would think the owners don't want to reopen it and would rather cash in on the development.

I assume the same kind of thinking with the co-op in SE23 - presumably there is money to be made. It's very low rise but I would have thought (hoped?) there were restrictions on the height they could build to because of all the two storey houses around it.