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Demolition begins on Rehoboth Boardwalk structures

Sirocco Motel, Grotto Pizza buildings razed to make way for One Rehoboth Avenue Hotel
April 22, 2025

The look of the Rehoboth Boardwalk is forever changing, as demolition has begun on a section of buildings between Rehoboth and Baltimore avenues. 

The City of Rehoboth Beach issued three notices March 21 for work related to the One Rehoboth Avenue Hotel project; they allow for the demolition of the Sirocco Motel and Grotto Pizza structures on the Baltimore Avenue side.

The notices were for a one-story commercial structure at 9 North Boardwalk, a one-story commercial structure at 5 Rehoboth Ave., and a three-story commercial structure at 2 Baltimore Ave. Demolition work began April 21. Once complete, the site will be regraded and cleaned for the summer season, with fencing installed along the perimeter of the Boardwalk and Baltimore Avenue.

The former Dolle’s building and the Zelky’s Arcade building are also in the footprint of the new hotel, but they will not be demolished this summer.

One Rehoboth Avenue Hotel is a 60-room hotel project with Boardwalk commercial space that’s located on a piece of property stretching the width of the block from Rehoboth Avenue to Baltimore Avenue and fronting the Boardwalk. It’s being built by Grotto Pizza and Pennsylvania-based real estate developer Onix Group. The site includes Grotto Pizza and the former Dolle’s Candyland property on the Boardwalk, the Sirocco Motel on Baltimore Avenue and Kohr Bros. Frozen Custard on Rehoboth Avenue.