I live in the area...
I drove by the other day and there still is a sign that says opening in spring of 2006. With all the work that still has yet to be done, I can't see how it will be opening before summer. It also appears that this same building will contain luxury apartments. Let me know if you have any additional questions. You can also search the local newspaper (seacoastonline.com) to read more articles about the hotel.
I am guessing that they will charge for parking. There are lots of excellent restaurants and shopping within walking distance of the hotel as well. Some of the rooms may have a water view but it is hard to determine what is going to be the hotel and what will be the luxury apartments.