A new 150-bedroom 'boutique hotel' is planned for the corner of Waterloo Road and Baylis Road. The redevelopment includes the listed former fire station building.
Plans for the new hotel were revealed at Waterloo Community Development Group's meeting on Wednesday night.
Gary Burns of Breanstar introduced the development which he described as a "courteous, quiet and respectful" proposal which will "bring a real buzz to the area".
Breanstar is working with the owners of the Hoxton Hotel to develop the proposal for a similar boutique hotel in Waterloo.
The development will encompass the buildings currently occupied by the Book Warehouse, Da Vinci's, Payless Food & Wine, William Hill, The Fire Station and the British Transport Police's Holmes House base.
Martin Potter of EPR Architects outlined the proposal for a hotel with six meeting rooms on the top floor, a restaurant/bar on the ground floor of the retained fire station building and shop units on the corner.
Breanstar hopes to submit a planning application to Lambeth Council this month and work could start next year.
The meeting heard that both Breanstar and Book Warehouse are keen that the bookshop should return to the site when the development is complete.
Gerald Shamash of Steel & Shamash solicitors, who own the adjacent building on Baylis Road, told the meeting that he was "really disappointed" that Breanstar had not contacted him to discuss the proposed development.