If you're after cheap and cheerful, I can recommend a hotel. We've been there 4 times now. It's got a nice big pool that's in the sun all day .... some hotels have the pool in the middle of the complex and you end up fighting for the few places in the sun. They have lots of activities for the kids during the day - the entertainers come round shouting out what activity is up next ... mini golf, darts, killer pool, table tennis ... etc.
The only downside to all this is the hill to get to the hotel. From the flat, it's approx 5 minute walk up a hill .... but it's quite a steep hill.
The hotel itself does have a few bad reviews .... but I tend to ignore them.
Just recently they've upgraded a few things.
This time when we went, we were quite pleased to find free Wi-Fi in the reception (useful for the kids ... or maybe yourself); the safe is now free (usually there's a charge for this), it's just a 5 Euro deposit for the key; the TV is free (used to charge for this). There's also a free bus that takes you down to near the beach and picks you back up (pick up a timetable from reception) - this is only for residents of the hotel, so no picking up and dropping off on the way.
The name of the hotel is "Laguna Park II" .... ignore any bad reviews .... unless you're after lush and lavish. It's a basic 3 star hotel and is usually quite cheap. We'll hopefully be going back next year :)