Fenwick Island has wide range of places to stay and the Fenwick Islander motel, the Sands motel and the Fenwick beach hotel are some of the places that I suggest for you. For more details, look at
Fenwick Island hotels page. Last year I got a chance to visit it, as one of my friends is living here. I just stayed in his place and relaxed from the summer crowd and enjoyed sunbathing, swimming, birdwatching and many more.
Don't miss to visit Assateague National Seashore, it has one of the best
beaches of Delaware and kayaking, shell fishing & surf fishing or some of the popular things to do. It's a good getaway spot for your summer, have a nice time!