Stayed at Radissons, right there at the waterfront. Very nice hotel with stunning views. But, not worth $400 per night. Cape Town is such puzzling place, great food with reasonable price, but the price for the hotels are rediculous. :)
For the first timers to Cape Town, I think staying at or close to the waterfront is a descent choice, as the V&A waterfront does have a lot to offer, varieties of shops, restaurants, touristy and yet with class.