A quality hotel in Camberwell Green? It is the sort of idea for which Sir Alan Sugar would flay one of his wannabe apprentices.

The new Church Street Hotel is 50 yards from one of South London’s noisiest junctions. The Green is full of winos, Camberwell Church Street has a drugs and weapons problem, and in the past year there have been at least four murders within half a mile of this quixotic venture.

That has not deterred Mel and Jose Raido, two thirty-something brothers possessed of abundant drive, optimism and can-do spirit. They have taken a run-down bed-and-breakfast joint – “a real dive”, says Mel – and spent a City salary turning it into a hotel unlike any other in the capital.

Outside, the handsome old building has been painted a smart grey. Inside, it is a riot of colour with a Spanish-American religious theme. The reception desk is fashioned from an altar. The corridors are decorated with madonnas and votive candles. The rooms, entered through arched doorways, are bright blues, greens and yellows, while the bathrooms gleam with wall-to-wall Mexican tiles. The beds are of hand-forged ironwork, and there are flatscreen televisions and DVD players in every room.

The hotel is delightfully idiosyncratic. My wife and I were greeted by a fresh flower, a jar of homemade hot sauce, two bars of organic chocolate, natural toiletries, a handwritten welcome note and a scattering of books, including The Iliad.

The brothers plan to open a tapas bar, but in the meantime you must venture out to dine. This being multicultural South London, you can eat Italian, Greek, Indian, Turkish, Vietmanese, KFC or “lip-smacking African”, but finding quality is harder.

We ended up round the corner in The Willow on Denmark Hill, where we enjoyed a fine dinner of warm goats’ cheese on crostini, crispy ducks’ legs on mashed potato, and white chocolate cheesecake with rasberry compot. With wine, the bill for two was £50.

The true gastronomic experience came at breakfast, which was 100 per cent organic – muesli with Tibetan goji berries, Greek yoghurt, coffee from Borough Market, croissants hot from a Wandsworth bakery, watermelon smoothies and orange juice.

The brothers consider Camberwell to be an up-and-coming area and hope to attract customers from the Oval, Camberwell College of Arts, affluent Dulwich, Brixton’s music venues and Vauxhall’s gay scene. It is a bold gamble.

Bottom line: Martin Fletcher paid £119.99 for an en suite double room with breakfast.

Sampling the fare: 57 ethnic varieties near by, but no foodies’ paradise.

Best thing: Breakfast.

Worst thing: Neighbourhood.

Access all areas: No.

Need to know: Church Street Hotel (020-7703 5984, www.churchstreethotel.com), 29-33 Camberwell Church Street, London SE5 8TR.

Room: 7 out of 10.

Breakfast: 10 out of 10.

Service: 9 out of 10.

Value: 6 out of 10.

Have you stayed at the Church Street Hotel? Do you agree with our review? Use the comment form below to add your views

Times recommends

• Win a Zeppelin flight over London
• A first timer's guide to... Morocco
• The budget guide to the French Riviera