Just finished a three-night stay on points (cash rates were around $600/nt). Parking is now $10/night. Food and bar service at the hotel is fully re-opened. The Honors food and beverage credit was $15 per person per night (max 2 persons of course). The breakfast offerings are from a small a la carte menu and reasonably priced (e.g. egg/bacon on bagel for $6). Coffee was free but not good, need to walk across street for decent coffee. Breakfast food items seemed to be pre-cooked (e.g. they offer rolled-up apple pancakes but said that they could not do plain pancakes). No restaurant tax in Delaware so getting breakfast for $15/person was doable. The beach is very close and very nice - umbrellas and chairs are now available on the beach for a fee, which is unusual for Fenwick. The hotel seemed to have supported the creation of this beach concession e.g. by letting the staff use their rest rooms. Following the new post-pandemic norm, intra-stay housekeeping ("room refresh") is only offered upon request and it seemed a bit hit or miss depending on how busy they are. The rooftop pool and "bar" area is small but welcoming. The chicken wings were fine, the calamari was meh. Due to Fenwick town rules, they make the drinks downstairs and then serve them to you on the rooftop area. The rooms are upgraded versions of the Home2 suite design, with a small kitchenette area that has a microwave, frig and dishwasher. The Fenwick rooms did have 2 TVs and a nice sleeper sofa/love seat combo.
lamphs is correct that there are many good eating options within walking distance.
Great update. I'll never stay here because my parents' house is nearby. And two decent coffee places across the street...one without food and another, High Tide, about a block over. High Tide has a great breakfast selection but a bit pricey. Next week I'll check out the beach concessions - new for this season.