REHOBOTH BEACH, Del. - Plans to build the Atlantic Crowne hotel on Baltimore Avenue have been put on hold because of financial conditions and interest rates, according to the city.
Rehoboth Beach Communications Manager Brooke Thaler told CoastTV that the property owners are “putting off the hotel” for now.
The Atlantic Crowne was approved as a four-story, 55-room hotel next to the Atlantic Sands Hotel. Plans also called for a ground-level restaurant and bar, an outdoor dining patio and underground parking.
The Rehoboth Beach Planning Commission approved the project in July 2025 with 10 conditions. Those conditions addressed issues including stormwater management, access to the parking garage, delivery logistics and screening for outdoor storage.
The Atlantic Crowne Hotel is currently under site plan review by the Rehoboth Beach Planning Commission. The project includes 55 hotel rooms and 42 underground parking spaces. The plans for this project shows the Atlantic Crowne to go right next to the Atlantic Sands hotel on Baltimore Ave.
The hotel was planned for the former Jam Bistro property on Baltimore Avenue. Jam Bistro was demolished in April 2025 in anticipation of the development. Eden Restaurant, which also operated at the site, closed its Baltimore Avenue location because construction of the hotel had been expected to move forward.
The demolition left the property being used as a parking lot.
CoastTV contacted the developer several times Monday seeking information about the project’s future but did not receive a response.
