There are lots of lovely hotels but I can only tell you about Dreams 😂
The location is great, you're right on the beach and promenade and there's a 7-11 type shop behind.
From the promenade you can walk for miles. Go left and there's a new hotel being built (Dreams aren't using the rooms facing the building work and you can't hear any building work from the hotel, even outside at the pools etc).
Continue ten minutes and you're at a marina which has a twice-weekly market, some shops and restaurants. Continue on as far as you like and eventually you'll hit the massive beaches of Papagayo.
Or go right on the promenade and walk past the three small beaches, again you can walk for miles. The main bars etc of PB are about 15 minutes away in this direction. You can also go to the harbour and take a ferry to Fuerteventura. It should all be clear on Google maps.
The hotel itself is large but not too large. Each room has a balcony. All bookings include half board- the food is great, they have snow coming in the buffet restaurants and there are other restaurants too. At breakfast kids can have Nutella crepes etc made to order. They'll cook omelettes etc for you too. Otherwise it's the usual buffet: cooked breakfast, European ham and cheese, lots of fruit, amazing pastries...
In the evening there's always some basic kids food like pizzas(which are actually really good) but the kids will probably be adventurous at the buffet as it's all done really nicely. If you want to upgrade to all inclusive you'll also have lunch and drinks, ice cream etc at the pool bars included.
The hotel rooms are really lovely, they provide good toiletries, beach towels etc. The staff are all great and the hotel has many return visitors. It was recently taken over by Dreams (it used to be Hesperia) so some trip advisor ratings mention this. I didn't visit before the changeover so have no fond memories to compare!
There's a kids club and two kids pools at the back of the hotel. One pool is ideal for toddlers and preschoolers, maybe 30-50cm deep with a small slide. The other pool is deeper, 1-2 metres with 3 larger water slides. There are 3 pools at the front, again varying depths, from 30-50cm up. There are activities around lunchtime at the front pools_ aqua exercise classes, occasional gin/sangria/ paella tastings etc. There are also pools for the preferred club guests at the front sides of the hotel (infinity pool and adults only area) . There are lifeguards and pool bars at each pool area.