I've seen several of these situations where they make flats out of an old pub/hotel whatever, but the planning permish says that the ground floor will still be a pub/restaurant.
I can't see how this will ever work. Apart from the issue of noise, most pubs have at least one "live in" staff who traditionally lived upstairs in an "owners flat". Often there were rooms up there for live-in barmen/barmaids.
Without that, and given the noise limitations, it seems to me that what will happen is that they may well offer the ground floor to be leased as a pub, but no-one will take it for the reasons I gave, and then maybe, they will after a suitable amount of time has passed by, ask the council for a change of use into a shop or something.
The Warrior / Junction is "supposed" to be re-opening as a bar.
There is a big pub near me in NW London that is going to be developed upstairs as flats, with the ground floor as a pub still, but i can't see it happening.
Hopefully the f***ers who are about to start this one (the pub was "Biddy Mulligans" on Kilburn High Road) will get screwed by a fall-off in property prices.
Giles..