About Lancaster Gate Lancaster Gate is actually a mid-19th century housing development in Bayswater, and contrary to what that might imply, was one of the grandest schemes to line the north side of Hyde Park. It consists of two long terraces of grand houses with a wide gap in between opening on to a square. Talk of Lancaster Gate these days and people think of the area immediately surrounding the tube station by the Royal Lancaster Hotel. Many of the properties are still in residential use though others are used as hotels which make them popular for visiting tourists given the close proximity to Paddington Station and its amazing transport links across the city and to Heathrow.