In 1900 Penley had the Novelty Theatre, London rebuilt, renaming it the Great Queen Street Theatre. He starred in revivals of "The Private Secretary" and "Charley's Aunt" later that year, and retired from acting in 1901. He continued to manage the Great Queen Street Theatre until 1907. Penley was a Freemason, becoming an early member of Green Room Lodge (an actors' lodge affiliated with the Green Room Club), and also the Savage Club Lodge, a lodge closely associated with the Savage Club. He was a staunch member of the Church of England, and was one of the proprietors of "The Church Family Newspaper".