Dewey Beach’s Atlantic Oceanside bought by D.C. firms

For the second time in two months, a long time Dewey Beach business has been sold.

First, in December, the Pier Point Marina was sold to Ocean City, Md.-based Blue Water Development.

Now, roughly a month later, the Atlantic Oceanside Dewey Beach Resort has been sold to two Washington, D.C.-based companies working in partnership on the acquisition – District Lodging Capital and The Bernstein Companies. According to Sussex County property records, under the name Admiral Dewey LLC, the property was purchased Jan. 24 for $7 million.

Built in 1983, two years after Dewey Beach officially gained its township status, the hotel had been owned and operated by the Marshall family – first by dad Bob and later by son Rob.

Rob oversaw a significant renovation of the hotel in 2016. That project included installation of the rooftop gazebo and moving the hotel lobby. Later that same year, Rob opened Dawn Patrol Cafe. 

David Duber, District Lodging Capital founder and managing director, said he had approached Rob at the beginning of the pandemic to gauge his interest in selling the property. The company also owns Beach House Dewey immediately to the north.

Duber said Atlantic Oceanside fits well with the type of businesses his company is interested in – a drive-to leisure destination. Dewey, like much of the surrounding area, is becoming a 365-day market, said Duber.

He said Rob decided to sell the property after decades in the business and because of a labor shortage in 2021 that looks like it’s going to still be a problem in 2022. Rob was ready to move on, said Duber.

For the coming season, Duber said, nothing too extensive is planned – new televisions, furniture, minor cosmetic changes. Following the season, he said, there will be more extensive changes, but ultimately the building won’t be demolished and is expected to stay structurally the same.

Rob did a great job running the business and keeping the hotel in good shape, which is why the company was interested in it, said Duber.

Duber said Atlantic Oceanside and Beach House will be run as separate companies for the time being, but there should be operational efficiencies because of their close proximity to each other. The goal in the future, he said, is to operate them as one.