Hearing set for new restaurant at old Sandcastle Motel

Eatery would be part of $5 million renovation for downtown Rehoboth Beach property
November 9, 2022

The top-to-bottom remodel of the former Sandcastle Motel in Rehoboth Beach continues to take place, and while there’s no word on what the new hotel will be when completed, the name of the new restaurant that will take up part of the first floor has been revealed.

The city has issued a permit-of-compliance hearing notice for a restaurant named Sirocco at 123 Second St. According to city code, since June 1991, a permit of compliance is needed by all new restaurants or dinner theaters where alcoholic liquor is to be sold or consumed. Approval of the permit of compliance by city commissioners is part of the process for the restaurant to receive a liquor license from the state’s Alcoholic Beverage Control Commissioner. Property owner Rehoboth Hotel LLC, based in Newport, Del., applied for a hotel liquor license Aug. 19.

The property has a Second Street address, but it’s a corner lot sharing the same Rehoboth Avenue block as the Rehoboth Beach Volunteer Fire Company and Rehoboth Beach City Hall. The property, which was the Sandcastle Motel for four decades, was sold about a year ago for $13.2 million. The building has been undergoing a $5 million renovation since. According to a scope-of-work document received by the city late last year, the hotel’s restaurant and a lobby will be facing Rehoboth Avenue when work is complete.

Rehoboth Hotel LLC shares the same address as commercial development company Harvey Hannah, which has opened a number of Hyatt-branded hotels in the area. Representatives from the developers and attorney Vince Robertson, the attorney listed as representing the developers at the hearing, could not be reached for comment.

The hearing is set to take place at the commissioner meeting at 2 p.m., Friday, Nov. 18.


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