County mulls buying Sheraton South hotel in New Castle area for use as homeless housing


On the New Castle County Council agenda is a resolution calling for a bid for The Sheraton South hotel off Interstate 95 and near Wilmington-New Castle Airport as housing for the homeless.

The hotel on Airport Road has been placed on the online auction block by its current owner. The property remains open.

Homelessness has been growing due to the Covid-19 pandemic and could accelerate as moratoriums on foreclosures and evictions expire.

The county and state have been making use of hotels and motels to house homeless and Covid-19 patients who needed to be isolated for a time.

Funds would come from federal CARE Act funds that were allocated to counties with a population of more than 500,000

The hotel has a star-crossed history with the county. Developed by the Capano family, the hotel remained closed for years after the structure proved to be larger than the specifications submitted to the county.

Sheraton South hotel heading to the auction block

It was later purchased by Delaware Park but remained vacant and was later acquired by the current Pennsylvania hotel owner.

The hotel underwent a renovation project this year, with owners later deciding to put it up for sale.

Hotel occupancy has plummeted in Delaware and throughout the nation as non-essential business travel remains a small fraction of previous activity. Despite some uptick in leisure vehicle travel, occupancy rates remain below break-even figures.

Click to access Airport-Road.pdf

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