Daytona Beach is wonderful. You will love it there.
There are many great hotels there, depending on what your looking for.
I always like to stay on the ocean, to me there is nothing like waking up in the morning and having your coffee on your balcony over looking the Atlantic!
There is Adam's Mark- High priced but worth it!
There are more moderate resorts: Treasure Island is nice, some rooms have full kitchens. The Beachcomber and the Acapulco are also very nice.
There are also many small motels/hotels on the ocean.
As far as things to do, my absolute favorite is the Beach, there is also an amusement park on the boardwalk. Daytona USA is there if you are a race fan, you can even drive a race car if you want if the Petty experience is in town when your there.
There are restaurants everywhere, from fast food, to lobster.
I used to live there years ago, and have spent at least 1 month a year there till recently.
Just let me know if you have any other questions. and enjoy your trip!