My wife and I were at a hotel on the beach in Daytona Beach Florida on 7/20/16. The hotel is on SR A1A about 2.0 miles south of US 92. The time was 8:52 PM and it had just turned dark. We were sitting in the lawn area overlooking the ocean when we heard several people in a parking lot next to us to the south speaking loudly and pointing to a blinking object in the sky. The object was about mile south of our position, at about a 30-45 degree angle from our position, hovering over the beach at maybe 500 (?). From our position it looked small maybe about the size of a penny held at arm's length. It looked like a sphere with a ring around it, kind of like the planet Saturn. It had a lot of lights on it many different colors. Very bright white/silver, green maybe others, not sure. The white/silver lights were constant and there were others blinking. There was a violet one on the bottom that blinked a lot slower than the others, maybe once every second. The others were faster. The object hovered for about a minute that we observed. It then slowly turned west then south arcing slightly as it did. It then headed south slowly then VERY quickly picked up speed and continued south down the beach until we lost sight of it.My wife noted there was a small plane approaching the object from the north and when the plane got really close, the object turned and quickly sped away. As my wife said "it hauled butt". I had difficulty getting my phone camera to focus in the dark but managed to snap one picture as soon as I saw it, then started video recording for 30 seconds or so. I turned off video so I could snap another picture. When I turned it off the object had started its turn. I turned the video back on until I lost sight of it.We are not sure what this was. It was definitely not a plane or helicopter. It couldn't have been a drone as the drone would have to have been a big one, at least 10-15 feet in diameter. No other logical explanation to what we saw.