Decided to check out Waikiki today and stopped by the Royal Hawaiian.
The good news. The Waikiki beach repleshinment project is done - and the beach is much more wider than before. It is a big difference. More room to put down your towel. Good surf today.
The bad news. Yep, the beachfront chairs are reserved and you must pay for them. They changed a sign at the Mai Tai bar where you go to the beach and noted all chairs are reservation only. It was overcast today - so it might not be a good sample day - but, so far it looks like an epic fail. Maybe 25% of the chairs were reserved, perhaps less. Looks like they've added even more chairs but at $40 for 2 chairs per day, it looks like people are passing on that option with the resort fee and an average room rate of $400 night. The bartenders at the Mai Tai bar aren't happy since the chairs are empty and the pool is on the other side of the property where chairs are free.
Besides your own personal chair and towel -I don't think there are anymore free beachfront chair hotel options.