The Holiday Village is probably the best hotel in Sharm for children as there is so much for them.It is advertised as a family hotel.
It is in Nabq bay which has lots of shops,bars and restaurants just outside the hotel so there is no need to go to Naama bay,a 30minute bus ride away, if you dont want to.
The Baron Palms is a smaller hotel in Ros Nostrani which has a better beach but apart from a small parade of shops between the hotel and the beach there is nothing outside of the hotel.
I have stayed at the HV and the Conrad which is next door to the BP and Nabq bay is a much nicer area.
Have a look on Google earth and you will see the difference between the 2 hotels.The HV is on a much larger site with a choice of pools and beautiful gardens.
I would go for the HV.

Thanks for that. The more I look at it the more I think we will book the holiday village. Do you know what the swim up rooms are like, or will the pool be too cold in february?

The water will be freezing in the swim up pools!.

i am sure,there is an age restriction,staying in the swim up rooms.our grandaughter is 8 & when i looked at them,i'm sure it said,children have to be 12.
this was last year though,so may not be correct,now.
tracy