MikeJ, there is the chain 'hotel' (Premier Inn/Travelodge?) near Ancaster Nissan, although that's a bit of a stroll from either of the Penge stations.
I confess that I do feel uneasy about the squeezing in of 16 studios, with shared facilities. I just get the sense that the retention of the bar/restaurant space is a nod to community requirements. We went to Beer Rebellion, Late Knight's 'pop-up' pub in Gipsy Hill last Saturday, in an attempt to try one of the burgers that we'd missed at lunchtime at Alexandra nurseries. The 'pub' there is probably about 20m
2 in the front bar (including the bar), 15m
2 in the back bar, and about the same in the downstairs room, plus loos and various other rooms for cooking/storage/whatever. In all, I'd think they'd got around 80m
2 to work with and, to be honest, the operation could be best described as chaotic. The beer is very good

Didn't get a burger though
If 80m
2 is true, and dependant on whether that includes 'back of house' and facilities, I just don't think it's enough to try and run an establishment serving food and drink.