I stayed at the King Kamehameha hotel in Kailua Kona, Hawaii, during Thanksgiving week. The location was great. The ocean was right outside and there was a small private beach area behind the hotel. There was also a beautiful heated pool right next to the beach if you don't like the ocean. The hotel price was approximately $100/night, but I was there during a holiday. The size of the room was very similar to any normal hotel, but the decor was very tropical and "Hawaiian." My room had a little balcony, so you could see the sunset and the ocean. My room didn't have a great view, but there were many that had amazing views. The hotel was very clean and well taken care of, and we didn't have to worry about lizards or bugs or anything.
The hotel had a luau a few days at night, but I wasn't able to attend because I was in Hawaii on a business/pleasure trip. I heard from other members of my party that it was pretty cool. I would recommend checking in to the luau as soon as you arrive if you are interested in attending, because it doesn't run every night of the week, so you will want to plan ahead.
The hotel was within a few blocks of the main strip of shops and restaurants. As soon as you walked out of the hotel entrance, you could see a small cove and the ocean. I would highly recommend this hotel to anyone. It had great service and was a little cheaper than some hotels, but was still in a great location and right on the ocean. Check out the pictures to see some more specifics!