Msemo (aka Southern Cross)
Shangani
$50
This is the main only tourist place in town, it's right on the sea front and offers wonderful views over Mikindani bay.
There are plenty of guest housed in the 4,000/= to 30,000/= around town, many clustered near the bus stand. Quality varies but you'll get what you pay for. Tell a taxi / tuktuk bajaji driver how much you want to spend and they'll take you to somewhere appropriate.