REHOBOTH BEACH, Del. - A proposed four-story hotel with an underground parking garage is drawing mixed reactions as it moves through the city’s planning process.
The project, planned along Rehoboth Avenue, would include about 60 hotel rooms, ground-floor retail and restaurant space. Early plans show businesses like Whiskey Jack’s and Grotto Pizza at the corner.
A major focus of discussion has been the underground parking garage a first for the city and whether it can accommodate larger vehicles. Current plans call for 60 spaces total, including 30 for SUVs and trucks and 30 for sedans.
Gwen Runion, a lifelong Rehoboth resident, said she supports the idea. “If it’s feasible to do that, it’s really needed,” Runion said. “Parking, as we locals know, is very expensive here.”
Developers have proposed using car lifts similar to elevators to move vehicles into the garage. Plans include about 30 lifts, though details are still being finalized. The city’s planning commission has discussed adjustments, including adding a few parking spaces and setting the garage height at just over 13 feet.
Developers said they would track the type of vehicle guests bring and limit larger vehicles once SUV-designated spaces are filled.
Not everyone is on board.
“It’s just so commercialized now,” said William Richmond. “All the little specialty shops and restaurants they’re all gone.” The proposal remains under review as city officials continue to evaluate design and parking logistics.

