Surabaya’s traffic is not as bad as Jakarta’s. I never find any compelling reasons to visit this city other than for business meeting and possibly meeting friend/family over a meal. It’s just not that exciting, There are some smaller towns like Batu or Malang that are supposedly charming with points of interest, but they are not for me.
Back to hotel topic, presently Westin is your best bet. Sheraton renovation is half-heartedly done. Location wise, many would argue Sheraton is in the city center - but what is there to visit other than a mall?