REHOBOTH BEACH – Coast Rehoboth Beach, Tapestry Collection by Hilton, a new 60-room, upscale boutique hotel developed by Harvey Hanna & Associates (HHA), has opened in downtown Rehoboth Beach.
Located at 123 Second St. along Rehoboth Avenue, it marks the latest branded hotel to enter Delaware’s beach markets but is one of the few to be located in municipal limits – it’s just two blocks from the boardwalk. It will compete with nearly a dozen other downtown hotels in Rehoboth for a busy tourism destination.
HHA bought the former Sandcastle Motel in 2021 for $13.2 million, according to Sussex County land records. It then invested in a major overhaul of the motel and the connected Conch Island bar and restaurant, opening Coast and its upscale Mediterranean restaurant, Sirocco, where guests “will enjoy flavor profiles from Rome, Mykonos, Nice and Barcelona – all imaginatively prepared.”
“We are excited to expand our hotel portfolio throughout the coastal Sussex region with the addition of another world-renowned hotel product, Tapestry Collection by Hilton,” Thomas J. Hanna, president of HHA, said in a statement announcing the opening. “The Coast property is a shining example of Rehoboth Beach tradition blended with a contemporary style making it one of the most unique hotel properties in the marketplace.”
HHA’s hospitality management arm, TKo Hospitality, will operate the new hotel and restaurant, marking the fourth collaborative project between the two companies. It already operates Hyatt properties in Dewey Beach and Lewes, among other locations.
Aside from Sirocco, Coast also features an indoor rooftop pool, an outdoor patio with firepit, a 24-hour fitness center, golf cart transportation to and from the beach, on-site resort inspired activities and access to bike rentals.
“The overall design inspiration for Coast will honor the history and legacy of Rehoboth Beach while celebrating the nostalgia of life at the beach,” Vince DiFonzo, president and chief operating officer of TKo Hospitality, said in a statement. “We are proud to collaborate again with Harvey, Hanna & Associates on another destination property that will contribute to the Delaware beaches thriving tourism industry.”
Tourism at the Delaware beaches has steadily risen since the COVID pandemic, and stays in coastal Delaware have now become a year-round occurrence. Through April, the average occupancy and annual revenue per room rate exceeded the 2022 levels, according to Delaware Hotel & Lodging Association data.
A rainy June and blazing hot July has dampened tourism a bit this summer, according to anecdotal reports, but it’s unclear what economic impact that may have in the long term.
