Demolition notices have been issued for three of four structures that make up the footprint of the future One Rehoboth Avenue Hotel on the north side of Rehoboth Avenue and the Boardwalk. 

Earlier this year, the Rehoboth Beach planning commission approved the site plan for the 60-room hotel, which is a partnership between Grotto Pizza and Pennsylvania-based real estate developer Onix Group. The property stretches the width of the block from Rehoboth Avenue to Baltimore Avenue and fronts the Boardwalk. The property includes Grotto Pizza and the former Dolle’s Candyland property on the Boardwalk, the Sirocco Hotel on Baltimore Avenue and Kohr Bros. Frozen Custard on Rehoboth Avenue.

The city issued the three demolition notices March 21 – a one-story commercial structure at 9 North Boardwalk, a one-story commercial structure at 5 Rehoboth Ave., and a three-story commercial structure at 2 Baltimore Ave.

Jeff Gosnear, Grotto Pizza president, said the three buildings are being demolished so site prep and utility work can begin, with the order of demolition being Kohr Brothers on Rehoboth Avenue, the Sirocco Hotel on Baltimore Avenue and then Grotto Pizza on the Boardwalk. For this summer, Kohr Brothers will be relocated to the Boardwalk in the old luncheonette space, he said.

The city’s annual moratorium on demolitions runs May 15 to Sept. 15. The city’s notices say none of the hotel-related demolitions can begin before Monday, April 21. The buildings are expected to be demolished before the May 15 deadline, said Gosnear.

Looking to the future, Gosnear said the remaining structures – former Dolle’s space and Zelky’s Beach Arcade – will be demolished this fall. Primary construction is expected to begin in October and is anticipated to take about 18 months, he said.

All existing businesses will be closed for the summer of 2026, with the new hotel and businesses opening by May 2027, said Gosnear.

The demolition process for the hotel will be taking place as the city is trying to wrap up construction of the new Rehoboth Beach Patrol headquarters on the Boardwalk at Baltimore Avenue. 

Gosnear said his team has been working with the city throughout the construction of its lifeguard station and will continue to do so. Unfortunately, he said, there were delays in the approval process, so the two projects couldn't be completed simultaneously.

“We plan to make every effort to mitigate the impact of our construction on our neighbors,” said Gosnear.

The city is aware of the pending demolitions.

“The city is communicating with both construction teams to coordinate activities and ensure that completion of the beach patrol project is not impacted by the upcoming demolition project,” said city spokesperson Lynne Coan.

Other demos planned

The city has issued seven other demolition notices since the beginning of 2025.

The most notable notice was for 21 Baltimore Ave., which is the former home to Jam Bistro, and the Camel’s Hump before that. The city issued a demolition notice March 14 for a three-story commercial building and an accessory structure. The structure is being removed to make way for a proposed hotel that will be located at 17, 19 and 21 Baltimore Ave. The two other lots are currently parking lots, which is why there are no demolition notices for them.

The city issued a demolition notice March 14  for a two-story, single-family dwelling and an accessory structure at 25 Pennsylvania Ave.

The city issued a demolition notice March 11 for a two-story, single-family dwelling and an accessory structure at 200 Philadelphia St.

The city issued a demolition notice Feb. 24 for a two-story, single-family dwelling at 11 Cookman St.

The city issued a demolition notice Feb. 24 for a two-story, single-family dwelling at 217 Norfolk St.

The city issued a demolition notice Feb. 24 for a two-story, single-family dwelling and an accessory at 159 Columbia Ave.

The city issued a demolition notice Feb. 19 for a two-story, single-family dwelling and an accessory structure at 403 Country Club Drive.

The issuance of these 10 notices makes 316 throughout all areas of the city since April 2012.

DEMOLITION PERMITS ISSUED IN REHOBOTH BEACH SINCE APRIL 2012

Permits issued annually since April 2012:

• 2012: 14
• 2013: 15
• 2014: 23
• 2015: 23
• 2016: 30
• 2017: 30
• 2018: 27
• 2019: 34
• 2020: 32
• 2021: 23
• 2022: 16
• 2023: 20
• 2024: 19
• 2025: 10, through March

Permits issued by month since April 2012:

• January – 24
• February – 24
• March – 44
• April – 13
• May – 6
• June – 3
• July – 11
• August – 65
• September – 39
• October – 39
• November – 29
• December – 19