Paradise is a good city to stay... there is a hotel called the Magnuson Grand(which last year used to be a Best Western)...it has an okay pool and a small, clean sandy beach. It is close to the falls and Whitefish point is a good place to visit as well...If you stay in Paradise, and enjoy seafood, there is a fish place(you'd have to ask a local the name) that has wonderful whitefish dinners(super casual). Mackinac Island is a lot of fun(to me, lol) I would consider staying at least one night there if you are able..not sure about hotel recommendation there as we went pre-kids and stayed in B+Bs... but I know there are a couple that are very kid-friendly with pools.. Even cooler though, in the center of the island, is an inn(which now has more buildings/condos to rent) called Stonecliff.. Before the bridge, in the lower peninsula, in Mackinaw City, I know there are family hotels that have better deals... even one with a water park... but it's crazy busy in that area..it's so nice to sleep with your windows open on the island and not hear cars.. just the occasionally clip-clopping of a horse going by...