I have stayed in both. I loved the villas for the extra space and the hotel's for the amenties close at hand but at the end of the day we don't usually spend that much time there, usually out early, back late. It depends on what you are going to do with your family and the ages of everyone.
If you are all old enough and fit enough to be on the go all day probably go for a hotel but if you have younger kids a villa would be your best bet. Being able to chill out with all the home comforts once you get the kids off to bed is ideal.