Overall yes I honestly think the Sheraton is better. Now keep in mind I have not stayed since the renovation at the Hyatt, but I honestly feel like that hotel has been going downhill since the hotel was sold. The club (location, staff, and free alcohol) made the Hyatt a very attractive spot for Waikiki. The new management just keeps making cuts.

I still think the staff at the Hyatt Regency Club is head and shoulders above any other hotel, but that's no longer enough to keep me there.

Here are a list of the things I think Sheraton has over Hyatt:

Location -- I like being on the ocean side and a bit closer to a lot of the dining options
More Ocean front rooms
Their ocean front rooms are not as noisy
The club is better (ocean views, lots of space, restaurant offerings for a fee if you don't like the free appetizers the hotel is serving)
Better pool choices
More comfortable beds (again I have not stayed at Hyatt since the remodel but previously they did not have the grand beds Maui has)

Sure the Sheraton has a convention hotel feel, and the rooms are minimalist. But I like the idea of an ocean front room with crashing waves lulling me to sleep. I have great memories of the Hyatt in its heyday -- back when they had the shell DND signs and the free alcohol in the club with a view and the limo that took you out to Diamond Head to make your hike. But those days are gone, and for me at least it's hard not to compare the less inferior services of the new hotel with how good it used to be.

I also used to think the Regency Club was better than any club in Waikiki. After seeing the new club at the Sheraton, I have changed my mind on this. Mark and company are amazing, but everyone has said the tone of the Hyatt club has changed since the club moved. Good people can only do so much to save a sinking product. I could care less about $3000 toilets and new furnishings. The whole feel of the Hyatt has changed for me and not in a good way.