Ya, you can just roam around the city on the first day of your arrival. I can suggest some hostels, but I didn't stay with any coz I stayed at a friend's place.
Maybe you can try Tune Hotels, medyo malayo but they have free shuttle service to/from the city centre.
Or try The Beach Lodge which is located right at the city centre. When I was looking for a place to stay, I was considering this because of the positive feedback. You can just google it for booking and more info.