Coastal Delaware is experiencing a hotel building boom, and the activity isn’t confined to city limits. Consider that the 114-room Cambria Hotel on John J. Williams Highway will welcome guests west of Route 1 this season. The luxury hotel won’t be lonely. Residence Inn Rehoboth Beach opened in 2021 across the road.
Meanwhile, Coast Rehoboth Beach cut the ribbon on its downtown Rehoboth hotel in August 2023. It’s managed by TKo Hospitality, which also handles the Hyatt Dewey Beach, which opened in 2013, and Hyatt House Lewes, new in 2022.
What’s driving the activity? “Since COVID-19, the world has changed a lot,” says Vince DiFonzo, president of TKo Hospitality. “The individual business traveler isn’t out there, and leisure travel has continued to grow—and will continue to grow. It’s a very good market.”
While stays in Sussex County dipped in 2023, they were still above the pre-pandemic count in 2019, according to Southern Delaware Tourism. This past March, Coast Rehoboth Beach’s 60 rooms were sold out.
Here’s a rundown of new and “newish” offerings, plus what’s on the horizon.
Hyatt House Lewes
Since Hyatt House is on Route 1, across from the Home Depot, you’ll need a car to get to Lewes Beach or Cape Henlopen State Park. The good news is there’s free parking on the hotel grounds as well as an indoor lap pool.
The 105-room hotel has 36 suites and complimentary Wi-Fi. Stream your Netflix or watch the 55-inch TV. Amenities include a 24/7 fitness center, a bar with light fare, complimentary breakfast and outdoor fire pits.
There is a 770-square-foot meeting space for functions, and group blocks are available. 17254 Five Points Square, Lewes; 783-1000; hyatt.com
Home2Suites
If you’re wondering why Nicola Pizza moved from downtown Rehoboth to new construction near Five Points, here’s the answer: The restaurant owners developed Homes2Suites by Hilton, which opened in 2020.
All 110 rooms are suites with kitchens and living areas. The difference depends on the bed size: queen, king or double queen. Guests receive complimentary breakfast, and other amenities include an indoor pool, fitness center, laundry facility and outdoor grilling area. 17388 Ocean One Plaza, Lewes; 200-7373; hilton.com
Cambria Hotel
It might seem counterintuitive to put a sophisticated hotel west of Route 1. However, Ocean City, Maryland–based Pinnacle Hospitality Group needed about 3 acres for the Cambria brand, which is hard to find in downtown Lewes or Rehoboth, notes Tauhid Islam, Pinnacle’s founder, CEO and president.
The Rehoboth Cambria, part of Choice Hotels, targets the leisure traveler. However, given the 6,000 square feet of flexible meeting and event space, the hotel will also market to banquets, including weddings and conventions.
There are two outdoor pools—one adult-only—poolside cabanas, one indoor pool, a Tiki bar, fire pits and the Veranda Restaurant and Bar. (Note that pets aren’t allowed.) 17222 Hood Road, Rehoboth Beach; 644-2200; choicehotels.com
Residence Inn Rehoboth Beach
This Marriott brand is also near Beebe Healthcare’s Abessinio Health Campus, home to the new specialty surgical center, and the Tunnell Cancer Center. There are 104 rooms with kitchens, including studios with a king-sized bed, one-bedroom suites with a king and sofa bed, and one-bedroom suites with two queens. The hotel offers a hot complimentary breakfast and an outdoor pool. 18964 John J. Williams Highway, Rehoboth Beach; 644-1432
Coast Rehoboth
The modest SandCastle Motel is gone, a relief for those who considered it a drab eyesore. In its place is the attractive Coast Rehoboth, part of Hilton’s Tapestry Collection. There are 60 rooms and suites, and hopefully, the city will allow developer Harvey Hanna to add more.
The hotel has on-site parking, a fitness center and streaming TV. Although the property is a short walk from the ocean and boardwalk, it has a pool. What’s more, Coast Rehoboth boasts Sirocco, a full-service restaurant inspired by the cuisine of the Mediterranean. 123 Second St., Rehoboth; 227-0400; hilton.com
Changing Hands and Brands
Harvey Hanna recently purchased the boutique 23-room Crosswinds Motel near Dogfish Head Brewings & Eats. TKo will manage the property. “There’s good synergy with Coast,” DiFonzo says. Minor upgrades and renovations are planned for the season. 312 Rehoboth Ave., Rehoboth Beach; 227-7997; crosswindsmotel.com
The Inn at Rehoboth on Airport Road, just off Route 1, is now Hotel Wave Rehoboth Beach. The property has a hot tub and indoor pool. 6012 Airport Road, Rehoboth Beach; 226-0700; hotelwaverehobothbeach.com
The Quality Inn & Suites on Route 1 heading into Dewey Beach is now Country Inn & Suites by Radisson. There is an indoor pool, exercise room and fitness center. The hotel offers a complimentary continental breakfast. 20891 Coastal Highway, Rehoboth Beach; 226-2400; choicehotels.com
Late last year, Heritage Inn, which sits on the border between Lewes and Rehoboth, converted to Staybridge Suites. Once known for its state-themed rooms, the property closed in November 2023 for renovations. 34521 Postal Lane, Lewes; 644-0600; staybridge.com
Upcoming
Rehoboth city officials have more than a request for Coast Rehoboth’s room expansions on their desks.
Gene Lankford, the owner of Atlantic Sands, wants to build the 55-room, four-story Atlantic Crowne on four 5,000-square-foot lots west of the Atlantic Sands. Plans call for a restaurant and bar.
The four-story Belhaven Hotel is still in the preliminary stages. The hotel would front the boardwalk at 2 Rehoboth Ave. (The original Belhaven Hotel on the site was built in 1898 and destroyed in the storm of 1962.) The project calls for 110 rooms and ground-level retail. It will be part of Hilton’s Curio Collection if all goes as planned.
Across Rehoboth Avenue, Grotto Pizza has plans for a four-story, 60-room hotel on the former Dolle’s Candyland site.
Don’t be surprised if these projects don’t pop up overnight. Permits and approvals take time in municipalities. Consequently, there might be even more action on the highway.
Related: This Delaware Town Is a Top “Calm-Cation” Desitnation
