Kendwa Rocks
(http://www.kendwarocks.com) +255 777 415 475 is located on kendwa beach on the north tip of zanzibar, is a bar and restaurant well known for their full moon party. they offer bungalows for a reasonable price. while the beach is beautiful and perfect for family vacations, parents with small children might want to avoid this place during the full moon, as the place then typically attracts a younger and louder crowd.
Sunset Bungalows
(http://www.sunsetkendwa.com) +255 777 415 475 is just up the beach from kendwa rocks. it offers a bar and restaurant, and many rooms at a variety of prices. they have been expanding and upgrading continuously. some rooms have air conditioning, all are self-contained. the staff is quite friendly and helpful.
La Gemma de l'est
$$$$ (http://www.planhotel.com/...) is an italian all-inclusive resort with own tarred road to main road. offers package deals including airfare from italy.