The Sheraton Luau is set up in front of the hotel, adjacent to the pool area and about 100 feet from the beach. It is a nicely done Luau but not a private setting by any means. Hotel guests are walking by as are joggers etc on the path behind the beach. Food drinks and entertainment are good. Sunset views are spectacular from the Sheraton property, but the restaurant at the Sheraton would block a sunset view from the seating area at the Luau.
Smith's Luau is held on the privately owned and quite lovely Smith's Garden property north of town. This is at the mouth of the Wailou River and on the same property where Wailou River tours to Fern Grotto embark. The setting is private,lovely, but not oceanside. The Smith Gardens are actually on the opposite side of the highway from the beach. It is my understanding that they do an excellent job at this Luau but I have not attended it personally. This property faces east so there would be no sunset.