I would stay at the Hapuna Beach Prince Hotel. Book a Gardenview to save money. They charge a lot for any of their oceanview or oceanfront rooms. Sometimes you will be upgraded.

Hapuna is on the Kona side but about 30 to 40 minutes north of Kona Airport on what is called the Kohala Coast.

The have a GREAT beach (Hapuna Beach) with good snorkeling and a small reef at the hotel. I went to 2005 and they have resident sea turtles at the beach which will swim up to you if you are in the snorkling area. Plenty of fish.

Check out the Outrigger Keauhou Beach Resort. I think it is exactly what you are looking for!
It is near Kahalu’u Beach (the snorkeling beach you are probably referring to) and it’s in Kailua-Kona.

Have a great trip!
Aloha

The hotels in Kailua Kona are pretty dated. There are only two I would recommend. On the south end of Alii Drive in Keauhou, Sheraton has reopened the old “Kona Surf” after a complete renovation. Outrigger operates the Keauhou Beach which sits on what most consider Kona’s best snorkeling beach, Kahaluu. Other than that I would not recommend anything else in Kona proper.

20+ miles north Marriott is renovating at Waikoloa Beach Resort. (Got an e-mail they are still in construction mode). Two miles north of that are Manua Lani Bay and The Orchid at Mauna Lani. Plunk their names into your favorite search engine and see if they meet you star and pricing criteria.

As mentioned below the Hapuna Prince is on one of all of Hawaii’s best beaches. Not great snorkeling but a great beach!

If none appeal to you then all I can suggest are condos.