The building was listed Grade II by English Heritage, and following a campaign to save the Rex by a local entrepreneur, the cinema re-opened to the public in 2004.

Built during the reign of Queen Elizabeth I, the house was latterly noted for its literary association with J. M. Barrie, author of Peter Pan, through its brief occupancy by the Llewelyn Davies family.

[2] Zetters' lease expired in 1988 and the Rex was sold to a property developer who planned to demolish the building to make way for new offices and flats.

Hannaway hoped to restore and re-open the cinema, but was unable to raise the money, and the Rex was bought by Nicholas King Homes.

The campaign was supported by the Twentieth Century Society, Joan Bakewell, and actors Hugh Grant, Hayley Mills and Ian Richardson.

Campaigners formed the Rex Film and Arts Centre Trust to put forward a number of commercial proposals for a leisure complex including cinema screens, a swimming pool and a pub.

[7] The proposal from property developer Nicholas King Homes, which envisaged building an apartment block around the cinema (replacing the neighbouring shop fronts) and converting the Rex foyer into a bar and restaurant, was successful, and conversion of the site began in 2000.

The cinema re-opened to the public in December 2004 with a screening of The Third Man, a film of particular significance as it was made during the heyday of the original Rex and the screenplay was by Berkhamsted writer Graham Greene.

[8] The re-opening of the Rex doors to the public was acclaimed by critics;[8] the Daily Telegraph remarked in 2006 that the luxurious facilities of the Rex and notable lack of popcorn were "the cinematic equivalent of turning left on a long-haul flight" (a reference to flying first class), and suggested that the guest appearance by Dame Judi Dench had been overlooked by local media only because of the major Buncefield fire which occurred that day.

To maximise the space, the projection booth was built into an exterior balcony protruding form the building above Three Close Lane, supported by large concrete brackets.

However, despite these alterations, most of the original fabric and decoration survived the years of decline, enough to merit spot-listing by English Heritage in 1988, and in 1990 the Department of the Environment recommended that the Rex be preserved.

[2][3] Following the 2004 redevelopment, the refurbished Rex is smaller, having 350 seats compared to the original capacity of 1100 (due to the larger leg-room and provision of swivel chairs and cocktail tables).

The work also brought about a major change to the building by separating the entire ground floor from the main cinema operation and converting it into a bar and restaurant.