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The Dunes Hotel Rehoboth Beach has been sold

Plans aren’t finalized, but structure will be removed to make way for single-family homes
July 10, 2025

Story Location:
The Dunes Rehoboth Beach
20902 Coastal Highway
Rehoboth Beach, DE 19971
United States

Located on the Forgotten Mile northwest of Dewey Beach, the Dunes Hotel Rehoboth Beach has been sold.

According to sales records from Sussex County, the 36-room Dunes Hotel Rehoboth Beach was sold May 28 to EVG-UDC Ventures LLC for $2.75 million. The LLC has an address of Chantilly, Va., and is a subsidiary of homebuilder Evergreene Companies. 

Erin Herman, Evergreene Companies sales and marketing director, said the company does not have any finalized site plans at the moment. However, she said, the plan is to remove the hotel and build single-family homes in that area.

For many years, the hotel was known as the Sea Esta IV Motel. It changed ownership in 2018 and reopened as The Dunes Rehoboth Beach in 2019. The rectangular property is 0.69 acres, has 300 feet of road frontage and is 100 feet deep.

The hotel is not in operation right now. Instead, a large fence has been placed around the property to keep out trespassers.

 

Chris Flood has been working for the Cape Gazette since early 2014. He currently covers Rehoboth Beach and Henlopen Acres, but has also covered Dewey Beach and the state government. He covers environmental stories, business stories and random stories on subjects he finds interesting, and he also writes a column called Choppin’ Wood that runs every other week. He’s a graduate of the University of Maine and the Landing School of Boat Building & Design.