We arrived in Tyre quite late and tried the hotel by the lighthouse. It was too expensive (even for Lebanon) and the rooms weren't great so we left. Yara Palace is close by, right on the sea front and we spoke to the manager, who was very helpful and friendly and gave us a good price.
The hotel is new, but in a 200 year old building that was once used as a prison. Now however it is very welcoming - it has a bar and restaurant, and hotel rooms upstairs.
The room was lovely - with balcony and amazing sea views, kitchenette (fridge, kettle, sink) etc, free wifi, en suite with hot water, satellite tv and dvd player, and it is easy to park nearby.
The ruins in Tyre and the main shopping street on the peninsula are a short walk away, and the owner and his business partners were very friendly. Watching the sunset into the sea is a must.
They only have four rooms at present, however there are plans to expand the number into another floor, so it may get even better.More