PNG is expensive. If you are planning to go you need to expect that everywhere - you will not find prices cheaper than Australia - you are doing well if you are find prices equal to Australia... Saying that, Madang is overpriced considering what you would get for the same price in Australia. Moving past price, I stayed in a seaside room which was in a double-level apartment block style- I stayed at the bottom level, and my colleague stayed at the top level.
We had beautiful views onto the ocean - but the best views were the top rooms (which have a nice balcony). Really enjoyed the sound of the water which I could hear from inside my room - lovely! I had a verandah (but the fans out there didn't seem to work). However rooms had AC and a fan, both working inside. Room had a working safe plus decent TV connection. Everything worked fine, only small issue were the pillows were all of the large variety - would be good to have some flatter ones :) Also had a desk in the room and fridge, kettle etc.
The restaurant attached is at the waterfront so can have some great views particularly in the morning with the mountains often visible. Meals are priced between 20-45 kina mostly, I really enjoyed the cajun tuna and also the romano pizza, plus the icecream is really tasty. Breakfast is OK - recommend the tropical fruit plate. Cereal is boring - just cornflakes. Pancakes were pretty good- but ask for extra lemon.
There is also a cute gift / coffee shop - best souvenirs I saw around PNG (not that I have been around much) and sometimes they have some really good cake out (plus you can have coffee and tea). All the staff in the restaurant and cafe are really lovely. Unfortunately service is often slow and there is a lot of going out back to check about any question you raise. However if you're not in a rush, it's fine.
You can purchase internet too - quite odd the way the options are. My colleague and I purchased 7 days unlimited for 200 kina (i think..) and shared it between ourselves. This worked pretty well about 80% of the time.
Also the pool is a highlight - you can see the ocean from the pool :)
ENJOY!