For something much smaller, near restaurants and a good craft market, ask us about rooms at The Slipway.
This is new complex of restaurants, shops and galleries beside the ocean. It has a very friendly, mixed air and is perhaps unique in attracting not only visitors to dar, but also local Tanzanians and local expatriates. It's a fun, cosmopolitan place!
They have a number of simple rooms here (they're sometimes known as the Souk), and although the rooms are fairly simple – it is nice to be able eat and only have two minutes to walk back to your room.
If you want to spend the evening here, but prefer the comforts of a larger hotel, the take a taxi here and ask the driver to wait for you, and drive you back at the end of the evening. The cost of this won't add up to much more than US$30 in total!