We really loved the peace and quiet of the Sunshine Hotel, along with the beautiful setting. We found the management to be very attentive and engaged in running the hotel, and yet at the same time personable and friendly with the guests. The staff as a whole were very good - well run place. I saw one of the reviews that indicated they were not happy the managers walked their dogs on the beach, but we found them to be friendly, very well behaved pets that did not get in the way of guests at all, and quite frankly thought it actually added to the family style atmosphere.
The pool was kept clean, as were the lawn and beach chairs. The food was particularly good - we had some of our nicer meals here, and it was great to just hang out at the restaurant bar and have a few cocktails looking out over the beach.
As to the rooms, we had #1 and #2 on the second floor in the cabin near reception. Our biggest concern when we booked was "no air conditioning", but we were assured there would be a nice ocean breeze and it would be ok, and it was. They have 3 fans in each room, but it was a bit warm - not unbearable, but a bit warm. This is the only reason I hit 4 star instead of 5 star in my rating. Outside of that, the rooms were big enough, with nice balconies to sit out on and take in the view, the sunset, etc.
Regarding the snorkling, we went with one of the guys on the beach who offered us a trip at a lower cost than the more expensive organized outings, and it was perfectly fine. We checked in with management first to be sure it was safe, and they vouched for them so we did it and saved ourselves some money. We went out to Mnemba atoll and the snorkling was great - really nice spot.
If I ever go back to Zanzibar, I would absolutely stay there again.
Ask for a room closer to the beach so that you get the most breeze possible!
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This review is the subjective opinion of a TripAdvisor member and not of TripAdvisor LLC.