Beach eats and stylish lodging just three blocks from the Atlantic Ocean

All the hubbub about the new Crusher’s restaurant in Rehoboth got me thinking about how that area in the third block has grown over the years. Long, long ago, that busy corner at Lake and the Avenue hosted a little gas station. When the first (and now long-gone) restaurant tenant there began renovations, a number of historic signs were revealed. Sadly, that particular tenant chose to remove them or cover them up.

But the history remains: The sunny yellow Hotel Rehoboth on that corner is operated by none other than Keith Martin and his mom Peggy. Keith’s grandfather operated a taxi service from the gas station next door, and in the late ‘50s he opened Peg’s Diner for his wife just one door east (near where Catchers Seafood is now). The little diner eventually became the Homestead Restaurant, specializing in breakfast and lunch. When they decided to extend their hours to include dinner, they renamed it Oscar’s Seafood to spotlight their skill with oscar-style preparation of meats and seafood topped with crabmeat and asparagus. They eventually closed Oscar’s and the space became home to the fledgling Purple Parrot which remained there until around 2004.

In the meantime, their daughter Peggy (born in Rehoboth) and her husband Bill (a Lewes native) gave rise to young Keith. Alongside the restaurant were several small stores, including a cute little place called Mostly Irish. In 1994 the Martins built the Comfort Inn on Coastal Highway and kept it until 1997. They loved downtown Rehoboth and watched with great interest as the little beach town morphed into the Nation’s Summer Capital – a burgeoning culinary mecca for vacationing foodies up and down the East Coast.

And along with those hungry visitors came the need for additional places to stay. The off-season was becoming shorter and shorter as Rehoboth’s fall festivals and events drew larger crowds. Keith elaborates: “Rehoboth needed more rooms, and my parents, Sherri (his wife) and I wanted a facility to compare with long-time landmarks like the Bellmoor, the Avenue Inn and the Boardwalk Plaza.” And thus, in 2008, was born the Hotel Rehoboth. The classic style and sunny color quickly established the building as a landmark in itself. The Martins’ goal was casual elegance, and their rooms are decorated to evoke sun, sand and the sea, accented by muted yellows, blues, creams and golds.

The in-house restaurant, Lupo Italian Kitchen, is always busy. Around the corner, Big Fish Restaurant Group offers Stingray (acquired from Cherry Tree in Wilmington), and Sazio in the old Zebra spot across from Stingray. On the corner at Rehoboth Avenue and Lake is longtime favorite Cultured Pearl, offering a panoramic view of the old “snowball shack” in the Crusher’s parking lot where Vince Failla's Cup'r Cone Ice Cream concept is now up and running. Vince is an ice cream guy all the way and has already been quite successful with his truck of the same name.

The Hotel Rehoboth complex contains several other popular retailers, including the perpetually clever and unexpected Mod Cottage (where do those guys find all that cool stuff!?). The hotel is also known for its festive beach shuttles that scurry about, whisking guests to dinner and the beach. Just a few steps east on The Avenue is the upbeat seafood spot Fins Fish House & Raw Bar. The endlessly prolific Fins Hospitality Group just opened JR’s Seafood Shack in the old Just Hooked spot on Fenwick. The unusual menu (at least for Rehoboth Beach) features Lowcountry favorites like hot Carolina chicken, a Seafood Boil, a Pimento Cheese Smorgasbord, and a Combo Platter featuring Carolina takes on shrimp, oysters and catfish. 

Keith speaks reverently about the hotels, restaurants and retailers in Rehoboth Beach. “We’re all in this together, and without all of us there wouldn’t be business for any of us.”

It’s fun to put a face on various businesses in town. Getting to know Keith and his mom Peggy has given me even more respect for the local entrepreneurs who step up to the plate and make Rehoboth Beach an even better place to visit – and to live.