Thank you all for taking the time to pass on your tips and advice. I'll be printing it off to take with us!

We are definitely up for breakfast on the terrace! We are in a 1 bed suite so within the hotel. I did hear the family suites were a bit cut off from the main hotel.

Princess Yaiza is a very big hotel (not particularly high rise but spread over an extensive area) so the annex where the 2 bedroom 'family' suites and Royal Kiko suites are is a 10 minute-or-so walk from the hotel lobby. The walk is entertaining for children though with lots of large fish tanks to look at along the way! It probably means its a bit quieter than the main hotel area as well and it does have its own separate pool including a children's pool.

I'm not sure I would bother hiring a car unless you really want to and enjoy doing lots of touring/going off the beaten track. The hotel offers a number of trips to the main tourist destinations. I recommend going to see the Volcanos as they do some 'party tricks' with the volcanic heat which the kids will love.

With this hotel I think you are paying for the amenities and the location so a bit of a waste if you are going to be driving around the island every day. There is a nice sandy beach in front of the hotel which the kids love. There's also a nice marina within a short walk (includes some nice restaurants). The hotel has a pretty good kid's club with a different theme each day and there are dress up characters who come round the tables at breakfast and also entertain at a junior disco early each evening. There is also an indoor soft play area and there's a spa for the adults (so you could put the children into kids club or soft play for a while and go to the spa!). During peak season they also offer some sports coaching (e.g. tennis and football) for the children.

The Japanese restaurant is worth a visit as its fun and entertaining for the children (the chef puts on a bit of a performance in front of the table). Food good too!

I agree on preferring breakfast on the outside terrace too.

Enjoy your holiday.

It's a beautiful hotel but the main pools can be quite cold.

Breakfast on the outdoor terrace is far nicer than in their integral restaurant, it's worth waiting for a table.

The little Italian place down by the gate leading to the beach was very nice when we were there. Kiddy friendly and often music.

There are long coastal walks in either direction with plenty of cafes etc to break it up for tired little legs!

Papagayo beach is beautiful but has no facilities which can be tricky with little ones. If you go, take everything you need!

Avoid playa del carmen.. Full of bar crawls and all day breakfasts!

There are caves/grottos in the north but I've forgotten what they are called.
A jeep safari is good dirty fun depending on how capable your littlest is!

You can pick up some good tips from these reviews on the Tots Too website from recent guests at Princesa Yaiza.
See here: http://www.totstoo.com/hotel/princesa-yaiza/

Depends what room type you have booked. If you have a 2 bedroom suite then you will be in the annex - some prefer the location of this, others not but room type and décor is the same. If you have a 1 bedroom suite then you are in the main building. As far as views and locations go I don't think there is much to choose - views are all side sea view unless you have paid a hefty sup for a full sea view but still nice. All of the suites have this really handy kitchenette - not enough to cook but great to keep snacks and drinks in.

As far as car hire goes I would wait until you get there. You are right on the promenade so can walk out to bars and restaurants and to Playa Blanca and then maybe just hire locally for a couple of days to get out to explore - I don't think you will need it the whole time.

Don't hesitate to ask me any more questions - my job is to inspect luxury family friendly hotels! Best is email: jo@quovadistravel.co.uk
Enjoy, its a fab place for a family holiday,
Jo

We've just booked this hotel in Lanzarote on a B&B basis with a 4 and 6yr old.

Anyone been and has any advice on rooms we should ask for, kids clubs, restaurants, places to visit? Do you recommend we hire a car for a few days for excursions away from the hotel or trips we should book?