Demolition Starting on Three Boardwalk Buildings for New 60-Room Hotel in Rehoboth Beach

Crews will soon tear down three buildings on the Rehoboth Beach boardwalk to clear space for a new 60-room hotel. The work begins after April 21, bringing major changes to this beach town's appearance. Grotto Pizza and Onix Group are working together to create what they're calling One Rehoboth Avenue Hotel.

The demolition will happen in stages - starting with Kohr Brothers, then moving to the Sirocco Hotel, and finishing with the Grotto Pizza building. If everything stays on schedule, the main construction should begin in October, with the hotel opening to guests by May 2027.

"We plan to make every effort to mitigate the impact of our construction on our neighbors," said Jeff Gosnear to The Beach Times.

Running from Rehoboth to Baltimore Avenue, the property takes up the old Dolle's Candyland spot and nearby buildings. The structure will be four stories tall, featuring shops and restaurants on the ground floor with hotel rooms on the top three levels.

The city has started working with construction teams to avoid any issues with an ongoing beach patrol project. With careful planning, both projects should move forward smoothly, city spokesperson Lynne Coan said.

After spending two years adjusting plans to meet local requirements, the planning commission fully approved the project this year.

When new flood maps came in from federal agencies, the developers added underground parking. Last year, city officials approved a special exception to size restrictions, allowing for extra space.

The changes go beyond just the hotel site. Teams will demolish 21 Baltimore Ave., which used to house Jam Bistro and the former Camel's Hump. Several beach houses will also come down as the town continues to evolve.