Coast Hotel, Sirrocco restaurant to take over Rehoboth motel

More than a year after Sandcastle Motel’s $13.2 million sale and $5 million renovation, the new owners have presented official plans for the Coast Hotel on Rehoboth Beach’s Second Street.

Accompanying the hotel will be Sirrocco, a Mediterranean-style restaurant that shares its name with the Sirrocco Hotel that once occupied space on Rehoboth’s boardwalk.

The Sandcastle Motel was bought by Harvey Hanna & Associates in late 2021, and a $5 million renovation began on the property shortly thereafter. Plans for the 60-room hotel and 2,800 square-foot restaurant have been in the works for some time now, but were presented during a permit-of-compliance hearing on Nov. 18.

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TKO Hospitality will take over management of the property, which is set to open sometime in the spring.

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