I would go for the Interconti. The location is slightly better compared to the Naumi. And for kids i reckon the better choice (nice Pool).
The Arab Street Precint has gone thru a nice transformation. Quite a lot of interessting bars and restaurants. It is in walking distance to the IC. And as mentioned above, Purvis and Seah street is just opposite. Plenty of restaurants there as well.
The MRT makes it convienient to move around.
Second option would be the Park Royal at Pickering. China Town at the doorstep. The China Square has also plenty of restaurants. And Club Street has some nich bars and cafes.