"The Chelsea returns Atlantic City to its roots, bringing a relaxed luxury and a fresh design outside the chaos of the casinos," says Curtis Bashaw, principal of Cape Advisors, the Cape May-based developer. His company heads a partnership for the project formed by the Morristown-based Normandy Real Estate Partners.

"Just as the non-gaming entertainment trend continues to soar in Las Vegas, we see this development heralding Atlantic City's 'coming of age,'" says Bashaw, whose company is behind several Cape May hostelries, most notably including Congress Hall and the Virginia Hotel.

The Chelsea, a portion of which rises 21 stories, is actually a redevelopment. Located near the Tropicana Casino & Resort, the finished product will combine the buildings formerly housing the Holiday Inn Atlantic City-Boardwalk and the adjacent Howard Johnson Hotel. The conversion was designed by Colleen Bashaw of Ridgewood in collaboration with Shawn Hausman Design of Los Angeles and the Getty's Group of Chicago.