Stay Above Board
Two years ago I had a wonderful stay in a top-floor suite at the Drake Hotel in Chicago with my family (2 kids, then 3 and 5 years old). The older boy accidently broke the coffee table by climbing on the cross-brace.
I had two quick thoughts. First, I have to admit I calculated it would be impossible to hide the damage. Second, if I were charged for it, it'd probably be at the hotel's retail rate. But in the end I thought the best thing to do would be to bring it to management's attention.
I had booked the room through the front desk manager, with whom I had become acquainted. So my thought was to explain to him and let the chips fall where they may.
I convinced him to come to the suite without explaining the reason I had to see him in person. Then I came clean and showed him the damage.
His response: "It's our normal policy to charge for damage. But since you proactively brought it to our attention, we'll just chalk it up to experience. I have kids, too, and you never know what will happen with them."
The OP did the same thing (brought it to management's attention), and I want to commend him for that. And recommend that others do the same.