REHOBOTH BEACH, Del. - The Rehoboth Beach Planning Commission has approved a one-year extension for the proposed Belhaven Hotel project, giving the developer more time before construction must begin.
The four-story, 105-room mixed-use hotel is planned for 2 Rehoboth Ave., replacing the property where Candy Kitchen sits near the end of Rehoboth Avenue and stretching along the boardwalk toward Wilmington Avenue.
Dukes also acknowledged financial challenges facing the project. He said costs have nearly doubled from an original estimate of about $50 million and that some amenities and Hilton-brand features have been scaled back because of cost. (Rehoboth City Documents.)
Attorney Harold Dukes, representing the Belhaven Hotel, told commissioners the project’s original approvals were granted Aug. 22, 2025. Under city code, the applicant had one year to begin construction, but Dukes said several factors have delayed the project.
Dukes also acknowledged financial challenges facing the project. He said costs have nearly doubled from an original estimate of about $50 million and that some amenities and Hilton-brand features have been scaled back because of cost. (Rehoboth City Documents.)
Dukes said lot consolidation, a key step before construction, was not approved until Jan. 23, 2026. Dukes said a city moratorium that began May 15 now makes it legally impossible for construction to start before the current approval window expires in August.
The Planning Commission approved the extension, giving the project until Aug. 22, 2027, before construction must begin.
Commissioners asked about the project’s timeline and whether the developer expects to need another extension. Dukes said the goal is to begin demolition in September, complete piling and major work before the following spring, and open around May 1, 2028.
“There’s a distinct possibility that this may not even come to fruition,” Dukes said during the meeting. He later said the project is still viable, but that depends on financing.
The Planning Commission approved the extension, giving the project until Aug. 22, 2027, before construction must begin.
