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Oahu - to stay in Waikiki or Ko Olina?

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We are considering an early fall of 2013 trip to Oahu with all 4 of our kids ranging in age from 7- 18. I have looked into staying in Ko Olina, but am also considering staying in Waikiki. My husband and I have been to Maui but have never stayed on Oahu. What are the pros and cons of staying at either location? I have considered having a car for the whole week as well as just renting one on the specific days we may need it. For those who have experience with this I would love your input.

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