DEWEY BEACH, DE—The developers of the Lighthouse Cove project here have put off planned renovations to some existing hospitality space and instead are looking to add more condominiums and hotel space.

"We didn't know whether the hotel was going to work or not. It's worked beautifully," says E. Thomas Harvey, president of Dewey Beach Enterprises, which owns Lighthouse Cove's block between Dickinson Street and Van Dyke Street. "So we're doing it a piece at a time. That's allowing us to do what we try to do on every project of this scale, which is find the market as we go."

The company has obtained permits from Sussex County to add a new building that would feature 22 additional hotel rooms on two floors and 10 more condo units on two floors. Harvey says his intends to add 18 condos by May 15th on the Dickinson Street side of the property, according to the News Journal.

Harvey says that upcoming construction work at Lighthouse Cove will extend the Hyatt Place hotel and condo building far back into the property along Dickinson Street, which will require some older buildings  to be demolished. The cost of approved work on the Dickinson Street side of Lighthouse Cove is $3.4 million. See story in the News Journal.