What is the best place to stay with teenagers.Willing to spend money for a great place.

I'm getting ready to go back to the Ali'i Tower at Hilton Hawaiian Village on Waikiki. Have stayed there twice and really enjoy it. With teenagers, you might like the Rainbow tower. HHV is large with nice wide beach (compared to rest of Waikiki) and lots of shopping opportunities and good food. Rainbow Tower seems to get booked first because of its location and view from rooms.
I have also stayed at Outrigger Reef and enjoyed it as well. But, for a family, I think I'd do HHV first.
There are many places that are less expensive and that are NOT on the beach. I prefer paying a little more for beachfront instead. HHV is slightly farther away from the main shopping street, but still an easy amble.

Outrigger Waikiki on the Beach. It's in the center of everything. And right on the beach.

Our next trip, we are staying at the Outrigger because it was in the middle of everything. We enjoyed "Dukes" and it was 'the' place.
Hilton seems nice, I've never stayed there, it was a bit remote for my taste.

I don't think I would refer to the Hilton as 'remote'. While it is on the far end of Waikiki it is no more than a 15 minute walk to Dukes. I stayed there with teenagers and found it to be great-- you could walk to the more crowded ends of the beach, but could choose to stay in the 'village' if you preferred. The best beginner surfing is in front of the Hyatt; but you can easily walk that, same with Dukes, shopping on Kalakakua (sp?), etc.

I would agree that the hilton (rainbow tower, ask for room facing diamond head) is a great place to stay with teens. Lots to do and nice beach. The chinese restaurant is wonderful there.

We stayed at the Hilton Hawaiian Village last year, and it would be a great place for teenagers since it's a fairly large complex, pretty much self-contained, and the beach is big, not as crowded as Wakiki Beach. You can rent sailboats, kayaks, etc. Another thought would be the Royal Hawaiian or the Sheraton which are both on Wakiki Beach, sort of in the middle of everything. They are both historical hotels and are quite lovely. My favorite in the Royal Hawaiian which is a mediterranian style pink hotel with a tiled roof. The beach is crowded but the kids would probably love it. You can walk out of both hotels to the pool areas that overlook the beach. One must-do for the kids is to take a ride on the Outrigger canoes that are on Wakiki (but they aren't at the Hilton. We walked from the Hilton down the beach to do it). Be sure to ride the yellow ones. A real Hawaiian takes groups of 4 or 5 out in each boat, you paddle like crazy, and then you ride the waves in. The kids will love it.