A Slice of Something New

New hotel, restaurant, and retail coming to the block between Rehoboth and Baltimore avenues

CONTRIBUTED BY GROTTO PIZZA

OVER MEMORIAL DAY WEEKEND, visitors to the Rehoboth Beach Boardwalk undoubtedly noticed the fenced-off areas between Rehoboth and Baltimore avenues. The demolition of several landmarks — a Grotto Pizza, the Sirocco Motel, Zelky’s Beach Arcade and the old Dolle’s site —will pave the path for a boutique hotel and new retail.

It’s a significant transformation to a familiar landscape, and change is never easy. Witness the laments after Dolle’s decided not to renew its lease and the building was sold. (Dolle’s now shares space with Ibach’s Candy by the Sea, its sister store.)

However, buildings age. The Sirocco Motel, for instance, was structurally compromised and considered unsafe. Moreover, today’s travelers want the latest technology, unique experiences, and personalized services and amenities.

In short, they have higher expectations, which explains the flurry of new accommodations in coastal Delaware.

Jeff Gosnear, president of Grotto Pizza, plans to deliver. “Given the space is oceanfront and directly on the boardwalk, we decided to build a 60-room, high-end hotel and retail for longstanding businesses — including Grotto Pizza,” he says.

Grotto Pizza has been on a mission to modernize its restaurants.

Consider the sparkling new Dewey Beach location. The desire to rebuild the boardwalk restaurant was the impetus behind the entire project, Gosnear explains. The parcel also included the Sirocco Motel — not to be confused with Sirocco Food & Drink — which was too small for a modern redevelopment.

Then the Dolle’s parcel became available. “We have enough land to develop a viable hotel and retail operation,” Gosnear says. Parking requirements helped cement the decision to limit the hotel to 60 rooms. “We also wanted the hotel to be in keeping with downtown Rehoboth,” he says. “A mega-room hotel is not appropriate. We designed the project to enhance the area, not detract from it.”

Grotto Pizza will employ up to 60 people at the new restaurant. One Rehoboth Hotel, a separate entity, will hire another 40 to 50 people.

But don’t plan your trip just yet. Gosnear predicts that the project will be complete by May 2027.