Businesses have warned they may be forced to close leaving "a lot of people disappointed" if a parade of shops is turned into a seven-storey hotel.
Developer New College hopes to replace the shops trading in New College Parade in Finchley Road, Swiss Cottage, with a 59-room boutique hotel - and submitted plans to Camden Council earlier this month.
But the plans may force out Eye See You opticians, Tech Gear phone accessories and repairs, Tanning & Beauty and Green Cottage Restaurant, which has been trading in the parade for 52 years.
Tech Gear's owner, father-of-two Tapan Shah, says it will be "a big problem" if the plans go ahead.
He signed a five-year lease in 2022 after expanding his business from a small concession in Tottenham Court Road, and hoped to stay in the area.
"People can live without a meal for one day but they can't live without their phones," he said.
"We help so many senior citizens set up mobiles and laptops, if they require printing services we do all of this.
"What's the point of only staying five years then change location? My family will be on the road, this is my bread and butter."
Ray Yu, a waiter at Green Cottage Restaurant, which has been serving customers Chinese food for 52 years, said: "A lot of our customers will be disappointed. They come, two generations, three generations, to eat here."
London Tanning and Beauty Shop has been trading in the parade since 1995 and signed a new five-year lease this year. It has a six-month break clause after 18 months, which means the owner must give them six months' notice to vacate after 18 months.
The owner, who asked not to be named, said the new the plans had been ongoing since 2014 but only discovered they had finally been submitted when reading the Ham&High.
"My staff are like my children," they added. "This will be devastating for them, for our clients as well as for me.
"If we don't manage to relocate, a 30-year-old business that has survived many economic crises, we will have to close."
Eye See You, an optician that sells bespoke high end glasses, opened in March with a lease with an 18-month break clause.
"Because we are new we didn't know if it would work but we didn't know about this," said the owners, who also asked not to be named.
"When you go for an eye test you tend to go to the same place. Like a dentist, you build confidence with customers."
A spokesperson for New College Ltd said planning permission was originally granted in 2015 for a complete knock down and rebuild.
In 2022 they held discussion with Camden Council and 'some neighbours' to refine the scheme they submitted in September this year, with changes including lowering the intended height, increasing distance between neighbours, protecting trees and obscuring some back windows to protect neighbours' privacy.
The spokesperson added: "Every commercial lease the current owners have taken out at the property has always included a break option and all tenants have been made aware in documented extensive communication of the long term plans, this is the main reason why the rent has been discounted so significantly.
"The current owner's timeframe is very much dependent on the council. Planning can take a long time, after which they will need to prepare as thoroughly and carefully as possible all the detailed plans and construction method to minimise disruption.
"The current owners have advised they will continue to work closely with the tenants, local stakeholders and the council with progress on the plans and long term goals of rejuvenating the site."
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here