Me and my wife spent the first couple of days of august 2008 at Kolding Byferie. The location is great, if you get one of the apartments facing the lake and Koldinghus (the big castle on the hill near-by).
Our room was oval, which made it a bit more special, but in a good way. The kitchen is limited, and the fridge is pretty small, even for two people.
The hotel/apartments are located in the middle of the city, within walking distance to the town's shops and old city. If you have a car, you can visit the Shopping Mall on the outskirts of the city. Are you more interested in the region, Kolding is a great base too. You can visit Odense, which is the third largest city in Denmark, or Ribe to the west, which is one of Denmark's oldest cities, with a lot of beautiful houses. There is also Germany to the south, where you can buy cheap drinks and food, or visit Flensburg.
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