Well, that's up to your situation. I'm organizing a gathering next year and I immediately said every family unit would get their own room to themselves. Because none of us could stand living together under the same roof for a full week. We love each other but our habits just don't jive. In-laws that get up by 8:00 while our son and his family will sleep until noon if possible. We stay up (along with the son and family) until well after midnight. Parents can't stay awake after 10:00. Some will want to eat sandwiches in the room while others will want to eat out all the time. And then there's the bathroom situations. Don't even want to go there.
For us, separate rooms is the way to go. For lots of others, they want a place that can hold everyone so they can be together 24/7.