We stayed at the Ilima Hotel which I booked on Booking.com. It is located a couple of blocks off Waikiki and is near the Ala Wai Canal. Our room was on the 15th floor (it has 16 floors) and was a 'Deluxe King Studio' for $122 plus tax. It had a king and queen bed and a small kitchen area. Very nice space with nice views of the city and a little bit of ocean. The lobby staff was nice.
My only two negatives are 1) no wifi in room and 2) no hotel guide. There is wired internet in the room and wifi in the lobby. Both are free. The guide to the hotel is minor, but it could show where the pool, exercise room, and laundry are. The location is fine, being half a block from Kuhio Street where the bus stops are.