Canalside Inn Canalside Inn is the Best of Delaware winner of 2022, 2021, and 2020. Located in the heart of downtown Rehoboth Beach, along the Rehoboth Canal, this contemporary hotel is less than 1 miles from the Rehoboth Beach Boardwalk. It offers rooms with a smart flat-screen TV, streaming services, and free WiFi. Each bright and colorful guest room at the Canalside Inn is furnished with a balcony overlooking the pool or canal. A refrigerator, microwave, and robes are provided. Guests can walk or take free beach cruisers to the beach or boardwalk. Free Beach chairs and umbrellas, kids games, fire pits, and Canal views. Guests can swim in the outdoor pool or relax in the hot tub.