Royal Kona Resort
The Royal Kona Resort is located at what I would call the end of the "Village." it’s all residential along the coast for about the next 4.5 miles till you get down to the Keauhou Beach Hotel. 
Right next door is Huggo's Night Club/restaurant and across the street close by is the Hard Rock Cafe and Outback Steak House. I heard through the wireless coconut that the hotel is being renovated. So it should be pretty nice. At least the refurbished part of it anyways. I would look here for an up to date review at TripAdvisor, from people who have stayed here recently. Da Real Scoop! The Royal Kona Resort is the furthest of the cheap Kona hotels from the pier. But still within walking distance of all the little shops, bars, and restaurants in the Kailua village strip. The hotel doesn't have a sandy beach but it does have its own small lagoon. 
Monday Wednesday and Friday evenings the hotel has a luau. I’ve never been to it so I can’t say one way or the other if it’s good or bad. The King Kam at the other end of the village also has a luau too. That one I’ve been to and it was pretty good. At the time I wrote this page the hotel was around a hundred bucks a night. After the renovation is complete its anyones guess has to what the price of a room for the night here will be.
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