Sorry for the late reply, but I haven't checked the forum in a while, but hopefully the info will help future kiters coming in to Providenciales, TCI.
Check out Comfort Suites (http://www.comfortsuitestci.com/
). It's in the middle of Grace Bay with the restaurants and all. In fact, Jimmy of Jimmy's Dive Bar, is an avid kiter and he's only 100 yards away.
There's also Sibonne - http://sibonne.com/
Caribbean Paradise Inn - http://www.caribbean-paradise-inn.com/
And if you want an all inclusive place try Club Med http://www.clubmed.us/cm/resorts-the-ca
Now if you really wanna go cheap try out the couchsurfers at area at couchsurfing.com. You might get lucky.
There's a lot more hotels and sometimes they would try in a special package that'll make it worth it.
When you get here try renting a car at www.gracebaycarrentals.com
. They offer the best rates on the island. There's no commuting here and it's the only way to go around is by car.
Now if you want to kite in the other islands (i.e. North Caicos, Middle Caicos) and/or do a really wicked downwinder with a support boat check out bigblueunlimited.com.
The place where we kite is Long Bay, a short 10 min car ride from these hotels. It's shallow (2.5-5.5 feet) crystal clear waters and mostly side onshore (with the easternly trade winds) on a 10-12M kite 10 months of the year (Nov-Aug). Check out the video at http://www.youtube.com/watch?v=oF5AAlqwVXQ
(Elevation Long Bay).
Hope that helps for future readers.