High-end hotel Coast to replace Sandcastle Motel in Rehoboth

After more than a year of speculation and a lot of visible renovations, the new owners of the former Sandcastle Motel in downtown Rehoboth Beach have revealed they are turning the decades-old building into Coast, a high-end hotel aiming to attract coastal foodies, families and business travelers.

Under the name Rehoboth Hotel LLC, Newport, Del.-based developer Harvey Hanna purchased the property a year ago for $13.2 million. Almost immediately, the company began a top-to-bottom renovation estimated to cost about $5 million. The property, which sits on the northwest corner of Rehoboth Avenue and Second Street, has an address of 123