First, the hotel doesn't have a pool, beach, nor ocean views. If those are deal-breakers then you may want to stay elsewhere but you would be missing out on a gem.
The Aqua Lotus does have a friendly welcoming staff (valet, front desk, housekeeping, managers), nice Diamond Head views, a location directly across from beautiful Kapiolani Park, good-sized clean contemporary rooms, and it is removed from the crazy madness of the heart of Waikiki (a ten minute walk along the beach). It is about 200 feet from Sans Souci Beach - a really nice swimming beach at the edge of Waikiki. It does offer beach cruiser bikes to explore the local area as well as beach mats and towels for guest use. A unique historic district of older homes and cottages are just steps away at the base of Diamond Head and a good long walk brings you up to the Diamond Head overlook. Access in and out to the rest of Honolulu is easy and you can skirt the traffic on Kalakaua in Waikiki.
Improvements would be an extra elevator (only one) and a full service restaurant - it has a restaurant space that serves breakfast overlooking the park (nice) but it isn't fully operational yet.
I definitely will return here on future trips to Honolulu. I've stayed at the Halekulani (5 star, $$$$$) and the Waikiki Parc (meh...) and I prefer the location of the Aqua Lotus despite its lack of beach & pool. Go figure...