Oahu

We stay in Kailua when we vacation on Oahu. When my husband is there on business he/we stay in Waikiki. Waikiki is like driving around San Francisco...no thanks!!

We prefer Kailua for the relaxed atmosphere. We rent a car and travel all over the island...it doesn't take long.

Have a fun vacation!!

In the main part of Honolulu.
Yes, Waikiki.
Why?
Because it is central, to walking places/transportation access/information access/concierge services/bus routes/stores/medical centers/shopping malls of all types and price brackets, etc. The Zoo is in Waikiki too. And Hula shows etc. And on Friday nights, there is FREE movie night, and everyone just sits on the beach and watch it with food vendors selling lots of good local plate lunches.
And Waikiki is scenic, you can see both mountain and ocean. And can hike up Diamond Head etc. too. and do a lot. Also the "East Oahu" area is where Hanauma Bay is, and other nice beaches, and it not far from Waikiki via car. Maybe 20 minutes. More if you keep stopping to take photos etc. and it is scenic.

Waikiki is also FULL of good local foods, of all ethnicities. Try the local foods. And many good "local" restaurants are near Waikiki too. Like on "Kapahulu Avenue." Or anywhere near Waikiki or in Waikiki.

I am writing this quick, cause I have to get going soon.
But will add more if I remember.

The other parts of the island, are nice too. But a LONG way, both in distance and traffic, to the main tourist spots or main hubs of action.
AND don't stay on the "Ewa" side of the island. That area is not for "tourists." It is purely, "local." ie: can be knarly and rough per outsiders. Real local, type places.
The North Shore is nice too, but a long way and on the opposite side of Waikiki. And can be kinda boring or isolating, if you are not into just hanging out and listening to crickets or drinking. But it is pretty. And a surf mecca.

The Hilton Hawaii is a cool/fun/good hotel for anyone, tourist or local.
Just of the top of my head, and it is child friendly. We have gone there with our kids. Many families stay there.
"The Moana" is also a nice hotel.
Or the "Royal Hawaiian" which is the famous "pink" hotel.
All right in Waikiki. And even locals stay at these hotels.

I love ANY place you can find right on the strip in Waikiki.
I did find having a pool helped.
I've stayed in all kinds over the years.
They didn't have to be "top notch or a name I recognized" as long as I
was able to see a picture online, it was across from the ocean on the
strip or no more than one street BACK.
Everything is in walking distance around there.
All the times I went, I did not require a lot of amenities but a pool is
nice.
Breakfast included is awesome if you can find it.
Is this your first trip there?

Updated

I love ANY place you can find right on the strip in Waikiki.
I did find having a pool helped.
I've stayed in all kinds over the years.
They didn't have to be "top notch or a name I recognized" as long as I
was able to see a picture online, it was across from the ocean on the
strip or no more than one street BACK.
Everything is in walking distance around there.
All the times I went, I did not require a lot of amenities but a pool is
nice.
Breakfast included is awesome if you can find it.
Is this your first trip there?

Here's my take, which is different from what is below.

It depends on what kind of vacation you want.
My 1st trip I stayed in Waikiki. I couldn't afford to be on the beach so we were about 5 blocks away. With just my husband and I, this was totally do-able. And it was nice to have restaurants within walking distance for dinner in the evening. These were the positives. The negatives were that in some ways, a city is a city (IMO). It's crowded - the beach here is very crowded. And if I forgot something in the room, it was a hassle to go back and get it. Even though we could walk to the beach and to dinner, we still felt like we needed a rental car because we wanted to drive to some snorkeling beaches, to see the north shore, Arizona memorial, etc. We did have a great time though.

For our second trip, which was this past fall and included our 2 kids (ages 3 and 7 at the time), we stayed in Ko 'Olina. We stayed in a resort on the beach for the same price as a hotel off the beach in Waikiki (actually got a 2 room suite for the same price as a single hotel room in Waikiki). And, when the kids forgot something, or wanted a snack, or just needed a little break, we could easily run back to the room. The beach was never crowded. Our resort hotel had a pool for when the kids wanted a break from the beach, because little kids can't really swim in the ocean, the waves are to tough for them. For dinner, we went to the next little town over, which had a lot of family-friendly restaurants. The only negative was that we had drive to dinner every night, we couldn't walk (unless we wanted to eat in the expensive resort hotel; we chose not to).

Overall, my recommendation is that for a family vacation, go to Ko'Olina. If it's just you and your 'other', then pick Ko'Olina if you want uncrowded beaches. Or pick Waikiki if you want a city and nightlife and you can afford to stay on the beach.

In Ko'Olina, we stayed at a Marriott Beach Club. It is nice and I highly recommend it. It is next door to the Disney Resort. The Disney Resort is GORGEOUS (it's in a Polynesian theme, not a typical Disney theme). It's expensive, but if you can afford it - wow is it awesome.

I second Waikiki. I still remember playing on Kuhio beach-- I don't know if you have little ones, but this beach has a seawall which makes the surf more tolerable for non-swimmers. If you like to boogie/body board, there are beaches very close by which offer that as well.

http://waikikibeach.ca/beaches/kuhiobeach.html

I also imagine that Waikiki is a common launching-off point for any tours you might want to take. When I was a kid, I remember Oahu having an extensive bus system too. Ala Moana and other shopping centers are close by too.

I always stay at my inlaws house. But my parents just went with us and they stayed at the Kahala and it was gorgeous. Waikiki would be a great place to stay but you also might want to spend a night or 2 on the north shore. Turtle Bay is amazing and has a great beach and there are lots of turtles. it is also a good launching point to go to the Polynesian Cultural Center, Spend some time shopping the boutiques in Haleiwa (the growing Keiki is my favorite), eat at Jameson's by the sea (AMAZING at sunset), and check out Waimea falls and bay. The only place the locals are "rough" is the west shore by Waianae (per husband). Always make sure you take all personal items out of your rental car (anywhere you go, especially touristy spots). Very excited for you!! Oahu is my favorite island so far and I've been to 4 of them!!!

For a first trip, definitely Waikiki.

Our family goes to Hawaii almost every August. We usually rent a house on the beach in Kailua (about 20 min drive from Honolulu). But that's because we've been there so often, we just want a nice, laid-back vacation with minimal "touristy" things. And if we want to go into Honolulu to visit our relatives who live there, it's a short drive.

But since it's your first time there, absolutely stay right in the middle of everything - Waikiki!

We stayed at Turtle Bay for our Honeymoon and it was SO gorgeous! It is a bit of a drive from Waikiki, but I thought well worth it. Waikiki is a busy place, lots of shopping, the beaches etc. We liked the fact that we were away from the hustle & bustle. So.. it depends on what your looking for. Have fun!!! Just thinking about Hawaii, makes me want to book a trip soon!! :-)))

Thank you for asking this question.

I have been looking at VRBO and deciding between Maui and Oahu. For Oahu I have noticed towns such as Kailua. Now I just notice someone mention Ko'Olina. The disney hotel looks amazing, yet I do not want to pay for it (I want to save money for activities).

Some of my wish list activities would be:
1. swimming with dolphins http://www.sealifeparkhawaii.com/directions.asp or http://www.dolphinquest.com
2. son getting a surf lesson
3.snorkel (not sure what we will do with our 4 year old as I don't think she can do this-reason to stay at disney resort for childcare).
4.BBQ our own food and sit by a pool (reason I want a house rental with its own pool).