mci,
As Paul has suggested, the Oasis at Palm Cove is very nice, however, as a suggestion it is presently the 'low' season in Far North Queensland. This means that you can virtually take your pick of accommodation at reasonable tariffs. You could always just explore and see where you end up each evening, depending on how much time you have and what you particularly want to see & do.
Cairns is an enjoyable city particularly when the tides in with a lot of attractions. You can readily depart from the wharf for a short trip to one of the coral cays an hour or so from the coast. Port Douglas is a smaller version of Cairns without as many attractions (in my view), but certainly worth the 1-1/2 hour drive along the Captain Cook highway !
The range of accommodation in Cairns is enormous depending upon how much you want to spend. A comfortable hotel near the centre of the entertainment area is the Outrigger which means you can walk into the city centre if you prefer.
Personnally, I am a dedicated fan of the Whitsunday region, however, it is about 6 hours away from Cairns by car and from your posting I wouldn't think you would be heading that far south. In case you do, the Whitsunday Vista is my first choice on the mainland with Hayman or Daydream as very comfortable island resorts.
By this stage, I guess I've only managed to confuse the issue. Enjoy yourself, Australia's as good as it gets !!
