Answered your duplicate post on Barbados same response

Hyatt Palm Eagle Beach my fav on Aruba deserty flat...

AIs generally old and sucky in Aruba check

reviews carefully believe the baddies

Booking.com best hotels Bookit.com crappier AI options

I don't think it's worth it to do AI in Aruba. There's lots of cheap dining options ( fast food, etc.). We've been to Aruba several times, and used MGM TOURS for our last trip in March. Their customer service wasn't the best ( a couple of mistakes that had to be fixed on our itinerary) but they offer very good rates on most of the hotels plus air.

One of the hotels you might think about, if you're looking for a 3-star, is The Holiday Inn. My MIL stays there often. Definitely not as pretty as many others, but it's clean and on a nice stretch of beach.

As for the Hyatt, yes, great hotel, but one of the most expensive on the island!!

Just wanted to add that there's no reason at all that you need to spend $20/person for breakfast. We usually get breakfast at a Dunkin' Donuts that's on the beach, close to our hotel ( The Radisson). There might be a DD in the Holiday Inn shopping mall, I just don't remember.

We stayed at the Holiday Inn and it was OK. Food was pretty bad. We chose the AI option ansd it was only worth it for the drinks. The location is great, just walk across the street for restarants, bars, shopping and entertainment. The hotel was fine and generally basic, but the price was right.

Also look at the Marriott properties. It's the next hotel complex from the Holiday Inn.

There is a water sports station in front of the Hyatt. Just down the beach from the HI. Also checkout DePalm.com which is the major tour operator.

Here's a link for restaurants in Aruba. It has customer reviews and general pricing. There are tons of restaurants in Aruba from fast food type places to lux and everything inbetween.

http://www.restaurantsaruba.com/all.html

From experience in traveling to Aruba for the past 16 years, a little more than half those times during the summer, rate "specials" for NEXT summer will more than likely not come out until after the first of the year.

The only all inclusives in your budget will most likely be the Holiday Inn or Tamarijn. The Tamarijn will meet all of your requirements for 3 star, nice beach with kayaking, and windsurfing on site. The resort includes use of snorkel equipment in their all inclusive package but there are no resorts in Aruba on Druif, Eagle, or Palm beaches which have snorkeling from shore. For this you would need to book a smaller apartment or studio accommodation in Savaneta or villa in Malmok.

December 17, 2011 through December 21, 2012 at the Tamarijn, "Kids Stay, Play and Eat FREE ALL INCLUSIVE year round up to age 11!" http://tamarijnaruba.com/packages/family/index.php

Otherwise, $250 per night will get you a three star hotel, but not three meals a day for a family of four or airfare.

For a family if you really want to go to Aruba and are having difficulty working it into your budget, rent a timeshare from a private party and make use of the kitchen facilities, if only for breakfast and lunch.

We have always used MCM Tours http://www.aruba4u.com when booking travel to Aruba and have never had a problem. They always offer the best rates for the Radisson (a 4 star resort) and their packages include daily breakfast buffet for two adults and children 12 and under. This summer we were able to stay at the Radisson with this package which at the time of booking also included a substantial beverage credit. You would need to phone them directly though to find out when they will have rates available for next summer.

We have stayed at a number of resorts on the island, the Tamarijn four times and the Radisson five times among them and would return to either one.

My mistake! We used MCM Tours, too. NOT MGM Tours!!

I've been to Aruba 3 times and I've never done AI. I've stayed each time at the Westin. If you stay in the high rise area, there are so many restaurants to eat at and you can walk to most of them too. It's so convenient. I would stay out of eating directly at the hotels if you're concerned about prices. For breakfast, we get Dunkin Donuts. We make a trip to the grocery store that is in town (around $1 or $2 for a cheap bus ride into town) to stock up on bread, peanut butter, chips for the duration of our trip for a quick lunch and then go out to dinner (usually non-hotel) at night. Don't worry about it. You can find reasonably priced places to eat. You'll have a great time! We always do and our daughter too!!

I don't know if you are still looking for suggestions, but my girlfriend and I stayed at the Holiday Inn back in April. This was definately a family friendly environment. Thankfully we chose not to do all inclusive. The food we had at the hotel was terrible and over priced. Like other posters mentioned though, there are several places to eat close by. We stopped by Dunkin donuts a few blocks away for breakfast every morning. You can easily get out of there for 3 dollars per person. I strongly suggest stocking up on booze at the airport though. Once you are in town it's tough to find cheap drinks.