Sandcastle Motel Transforming Into Luxury Hotel and Restaurant

REHOBOTH BEACH, Del.- A top to bottom renovation will turn the Sandcastle Motel into a 60-room upscale hotel, restaurant and bar called Coast.

In November, the Rehoboth Beach Board of Commissioners voted to approve a permit of compliance for a Mediterranean-style restaurant, Sirocco.

Some neighbors aren't happy to see so much change in the area. 

"This is my neighborhood," Ann Weir said. 

Weir lives half a mile from the boardwalk. She is one of several concerned citizens who worries the hotel will change the overall feel of the city.

"We're supposed to be a quaint little seaside [town.] We used to be a fishing village. I just want us to preserve what we have," Weir said. 

Other people like Bill Klokis welcome the changes. 

"The new restaurant is supposed to be more of an upper-class restaurant. I think I would give that a try and definitely look forward to dining there," he said. 

The Coast Hotel is one of five hotels on the drawing board this year. None of them are as closed to being finished as Coast. 

Some local business owners said expansion is great for the community as a whole.

"I think it'll be very helpful to the town. To attract people that have so many different places to choose from and they choose Rehoboth, that'll be great for all of us," Sara England said. 

Some neighbors fear the hotel will bring unwanted noise and traffic. At the last Rehoboth Beach Board of Commissioners meeting TKO Hospitality, the group representing the project, addressed some concerns.

They said the atmosphere is meant to be low key and noise would not be an issue.

The hotel is expected to be finished in spring of 2023. 

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