Hello,
I would defintely recommend the Nestor Hotel. We are also a family of 2 adults and 1 child. We went there last yearand had a great time. Nestor is really close to the harbour and 10 minutes walk to the Square but far enough away fom the noise. We never heard any noise the whole fortnight we were there. Around the corner are two fairgrounds which our daughter loved going to. there are also plenty of bar and restaurants really close by and a nice beach just around the corner.
The food at the Nestor is really nice, we stayed all inclusive for four days and all he drinks you can think of are included - especially the cocktails which were really strong.
There is entertainment around the pool all day for adults and kids and a mini disco and shows at night.
We would definitely recommend this hotel. hope this makes it easier for you to decide.
Regards.
:-)