Both are good.
Both are on PCH, a busy commercial street. The Holiday Inn is closer to the ocean and is closer to the beachtown section of Hermosa Beach. You can walk to nice restaurants from there.
We stayed at the Hermosa Beach Hotel while our house was painted. It’s further away from the water. Because it’s on a bluff you get a nice view from the hotel. Because it’s high up any walk to the ocean or the beach town area might feel like a hike instead of a stroll. It’s on the north border of Hermosa Beach, while the Holiday Inn is on the south border, so it’s about 10 minutes closer to the freeways and LAX.
This time of year stay at the Hermosa Hotel. We splurged for one of the 2 story suite rooms with beautiful views of the Sobay. No traffic noise. Our friends stayed at Holiday Inn and did not like it or location.
If you have a car, drive to the downtown area of MB where you can park at the base of the Pier, bring quarters for meters. Walk out to the Roundhouse at the end. Watch volleyball players and surfers from above. The few blocks in town are filled with cute cafes, shops, restaurants. The Strand walkway along the beach goes for miles in either direction.
One evening go to Hermosa Plaza for dinner. There are a number of restaurants and bars on the pedestrian only street to choose from. We go around 7 PM, as later on the 21-30 years come out to party on weekends.
Enjoy your visit!