Hi, I havent stayed in this hotel, but in regards to Alcudia, it's a brilliant place for families. The hidropark in Alcudia is roughly 3 miles from your hotel. It's not as big as the waterparks down near Palma, but still great fun. There is also Go Karting along the road from there. There is a kiddies fun maze in Alcudia, trampolines,crazy golf,bars with various kids entertainment,family pedal cars,pedal boats,amusement arcades and so on.... plenty to keep you busy, and plenty for kids to spend their parents money on!
No Frills excursions which you will see advertised all over the place, offer transport to some of the other attractions on the island if you don't hire a car. Caves of Drach are worth a visit,Pirates show,Palma aquarium,Rancho grande horseriding etc etc etc
Hope you have a great time