I plan to go to Tenerife for a holiday in the start of may. I could use some advice on hotels.

I will be travelling with my girlfriend and her young (2.5 year old) son, which will be the first time in my life I travel with kids. So I am really unsure about a few things.

The ideal thing for me would be to use points. I have Amex MR, Starwood and Hilton points (plus LH, KLM and Delta, but usually airline points are very inefficient for hotels). The only hotel I can see that I could use those points on is the Starwood "luxury collection" Sheraton Mencey, which seems to me to be more like a business hotel. Can anybody tell me if this is an appropriate hotel for a holiday with a 2.5 year-old child?

Otherwise, can anybody recommend a good hotel, ideally on the beach?

I also see alot of advertisements on the net for apartment rentals. I have never done that before. On one hand I appreciate the luxury and social environment of a nice resort hotel, but on the other hand I can see how it would be convenient (with a small kid) to have a kitchen. I am also afraid that the apartments would be run-down or not very nice and I would be disappointed. So I would like to hear advice on this from anybody who has experience with renting an apartment rather than using a hotel.

THANKS!
Ron