The Chelsea was created by giving the old Holiday Inn and Howard Johnson hotels a $112 million makeover. The old hotels were gutted and combined into one luxurious property featuring retro-chic decor reminiscent of the 1950s and '60s. Developers say the Chelsea is the first noncasino, boutique hotel to open on the Boardwalk since the 1960s.

"Just wait until you see this hotel," Jeffrey Vasser, executive director of the Atlantic City Convention & Visitors Authority, told the crowd. "The Chelsea is a perfect example of how Atlantic City has evolved into a full-service resort destination. Who would have imagined just five years ago that Atlantic City would have a luxury, boutique hotel?"

Originally, even before the Holiday Inn and Howard Johnson arrived, the old hotel at Chelsea Avenue and the Boardwalk was Teplitzky's, a kosher resort that catered mostly to Jewish guests.

In a tribute to the former owners, the Chelsea will have a Teplitzky's restaurant operated by celebrity restaurateur Stephen Starr. Found during the renovation work for the Chelsea was a Jewish prayer book that came from Teplitzky's hotel. Bashaw presented the prayer book as a gift to Claire Teplitzky, whose mother- and father-in-law, Esther and Hyman Teplitzky, founded the old hotel.

"Curtis Bashaw is a classy man," said Claire Teplitzky, who lives in neighboring Ventnor. "From the first time I met him and started telling him about our family, he drank up every word."

In addition to Teplitzky's, other dining options in the hotel include another Starr-operated restaurant called Chelsea Prime. Chelsea Prime is part of a restaurant, lounge and entertainment hub on the fifth floor. Just off the fifth floor is a terrace pool featuring private cabanas and full bar service. Guests will have to wait a little longer, though, before the bars and restaurants are ready, probably by the end of the month.

About 115 of the 330 rooms are now open. When completed, the hotel's room inventory will be divided into the pricier "Chelsea Luxe" accommodations overlooking the ocean and the more affordable "Chelsea Lite" lodgings closer to Pacific Avenue. Room rates will range from $225 to $450 per night in peak season and from $95 to $275 in slower periods.

Starr, one of the speakers during the ribbon-cutting ceremony, joined with others in describing how the Chelsea will help broaden Atlantic City's appeal beyond casino gambling.

"What excites me the most is this concept of having a hotel not connected to a casino. That will be a draw in and of itself," he said. "Personally, I think that this place is going to set a new standard, not just in Atlantic City, but the entire shore area of New Jersey.

"Everything about Atlantic City has always been casino, casino, casino. I know that's important, but finally this is a breath of fresh air where you can come somewhere and have a hip, cool time - whether you be single or married - and not have to go to a casino," Starr continued.

Gov. Jon S. Corzine emphasized that the hotel has created 500 jobs. Despite the gloomy economy, the governor noted that the Chelsea is part of a multibillion-dollar building boom of new gaming resorts and noncasino projects expected within the next five years.

"When I hear people talk down, they ought to be talking up about what's going on in Atlantic City, because you're setting the pace," Corzine said of the positive impact of so much construction on New Jersey's economy.

E-mail Donald Wittkowski:

DWittkowski@pressofac.com