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This end of the terrace was the original purpose-built York Hotel (renamed Royal York from 1856 after a visit by HRH the Prince of Wales, later King Edward VII). Construction of the hotel had started in 1807. The remainder of the terrace dates from around this time. Originally separate houses, one became the Faulkner Hotel, and other houses in York Terrace were assimilated into this after the Second World War. The two businesses combined in 1970 to become the Royal York & Faulkner Hotel, which occupies a substantial part of York Terrace. Originally there was a yard at the far end of the original terrace and next to the yard was the old lifeboat house. In 1900 James Pepperell bought some of the yard and built Shenstone in 1911. In 1923 Carlton Mansions, the first flats in Sidmouth, were built on the site to complete the terrace.

Sources: Royal York & Faulkner Hotel and the Sidmouth Herald (article dated 13 Feb 2011).