Hotels near Margate City, New Jersey. Margate City is 5 miles southwest of Atlantic City. We can also help you find hotels near Margate, Florida. Margate City Group Hotel Rates  10 or more rooms.idscale, downtown Atlantic City hotel Near boardwalk and beach. Map of hotel and Margate City NJ. Hotel does not allow pets. Free continental breakfast-Free Internet in room. Most Recent Guest Review. The hotel was on a street with lots of traffic, so it was noisy.