Not only is this a great hotel it's very conveniently located at the beginning of the Kona Strip and right in front of the Kailua Pier where you'll probably start some of your tours and activities. The other water adventures will most likely leave from Honokohou Marina only about 10 - 15 minutes away (note, the speed limit is 35 on the outskirts of Kona, its a speed trap for sure, so watch the signs).
Anyway, it's a happening spot and a great hotel for your trip to the Big Island. If your M.O. is to spend your time resort style not leaving the hotel and staying in a sleepier part of town, then maybe look into Waikoloa, but really consider what you're missing out on confining yourself to a resort. I am an adventurist so I like to be out on the water swimming with dolphins, ATV'ing Waipio, seeing and doing everything I can on the Big Island and then have a nice place to come back to with an awesome staff, good food, nice rooms, and lots to do in the immediate area. More