You'll find that basically all Tiberias hotels are kid friendly, as it's a resort town. As others noted, there is very little in town other than the resorts, the Kinneret and a few religious sites.

I stayed at the property 3 times over the years, when it was still quite dated. I understand it was renovated quite recently, so hope you won't see the paint peeling off in the suites as I did on both occasions. The good news I guess are that I got upgraded 3 of 3 times to fairly large junior suites as a Platinum. Furniture was very old but the view was very nice and the staff was very friendly and helpful.

Hope you enjoy your vacation. At CAT2 rates, it's certainly very good value for your points.