My fiancee and I decided to take a short-notice trip to Rehoboth, and called several motels once we had arrived. Most B&B's were booked, and one suggested the Cape Suites to us. We arrived and had prompt and friendly service and were given a room. The room seemed quite nice to us; it was maintained well and provided just what we needed for our quick trip to the beach.
The price is a bit much per night for the small room with nothing else offered, but it is one of the cheapest in the area during the summer season. Cape Suites location was also nice for us, as it was only a short walk to the boardwalk - perhaps three blocks - and it is relatively central to the town and shops. The street was not busy at all in comparison to the rest of the town so it is nice and quiet, which makes up for the lack of view from the balcony! A minor annoyance for us was the small parking area in the back, which was difficult to squeeze into with our medium-sized truck. Not a big deal for us, because we chose to get around the town on foot. If you're looking to drive around constantly you should be aware that in the peak season it will be a pain to park with other guests there.
Basically if you're just looking for a place to rest in the town for a few nights, it is a great choice.