Hotel Molokai is a throwback to the '60s fascination with Polynesian decor, right down to the tikki torches. Anywhere else and this place would look cheesy. Okay, it looks cheesy here, too...but in a good way.
The food is tasty, though pricier than what you'll find in the main part of town. Though there are plenty of tourists, it's clear that the locals also eat here. They specialize in seafood with a variety of different sauces, including a locally produced pesto. Wednesday evenings has a buffet special with different cuisines of the world, for $10-$15/pp, depending on the fare.
The real reason to come here is to enjoy the oceanfront view. So even if you eat dinner elsewhere in town, it's fun to put on your loudest Hawaiian shirt and stop by for Pina Coladas and watch the sun set. You can go for a walk on their beach afterwards and collect coconuts.
Bands perform on weekends. On Fridays they have free pupus (appetizers) to go with the music, so it may be the most happening place on the island. (But if you are looking for a club scene, what are you doing here?!? Go to Waikiki!)