The welcoming and aptly named Ocean Panorama is on a hill with great views over the sea. Rooms are basic but clean, with a small terrace. The manager, Mohammed (known as Eddie Prince), is a great source of local info and can set you up with tours, boat trips, snorkelling and diving at reasonable prices.
Meals are available (from Tsh10,000) if pre-booked. The guesthouse is in the area of Mkoani called Jondeni; when exiting the port, head north (keep the sea to your left) and walk 750m up the hill.