Stayed here for 4 nights in July and I wasn't really looking forward to it from the reviews and fairly amateurish web site but after several days dragging a 9 year old around the Alps we needed somewhere family focussed for her to enjoy herself. After much searching we settled on the Lago di Lugano for the advertised facilities rather than the hotel per se.
What a surprise, on arrival we were greeted with cool fresh fruit juice and very efficient reception staff who spoke very good English, far better than my Italian or German.
In our room we were surprised at the size, large main room with twin beds, TV with video, table and chairs with complimentary bio cordial type juice and fresh fruit (which was replaced as used), 2 other relaxing chairs with a small table, well stocked mini bar (with usual mini bar prices of course), loads of storage space. a separate child bedroom also a reasonable size equipped with bunk beds and plenty more more storage and a ceiling fan. From the main room a door onto quite a sizeable balcony with table and chairs, sun blind and views of the gardens (we booked the cheapest room). We did however have a partial view of the lake.
The room was also equipped with air conditioning, which I didn't expect, and a mini safe. Reception provided the AC remote control and safe key on request - no additional charge - fantastic!
Bathroom was normal hotel size, double washbasin, loo and bath with shower over. The whole room was spotless and kept that way thoughout our stay, the housekeeper called around each early evening to turn down the beds and leave a small chocolate, if we were in then she alway asked if everything was OK and did we need anything, again great.
The hotel itself was fairly large, a couple of restaurants, bar inside and by the pool, wireless internet access throughout, various lovely gardens to lounge around in if you wanted to avoid the pool area, plenty of sun beds and cushions, sun shades and towels. Cushions, shades and towels all collected from a small hut when required and returned when finished with. Pool was a fair size, regularly cleaned and the water tested, no dodgy tummies or ear infections with this one. Overall facitilities were as described and much better presented than some earlier reviews have suggested, I guess some refurbishment must have happened. OK a stain on the carpet in our room but it had obviously been cleaned properly and wasn't an issue.
Plenty of activities for the children, 3 different age ranges, our daughter had her first go at water skiing and really enjoyed herself. Pedalo's to wear dad out in the 30+ heat, swimming in the lake, table football, table tennis, etc, etc.
Breakfast was pretty much as others have described, a comprenhive collection covering pretty much everything you would need for both adults and children, quality was very good. We ate in the lake side restaurant on 2 nights, childrens menu containing the usual suspects plus a pretty reasonable selection on the al a Carte menu, plenty of choice in the wine and spirits department. We all enjoyed our meals, well cooked, good quality ingredients but there was just something missing that I can't quite put my finger on! We went twice so can't be that bad.
That's all the positive stuff, negatives - nothing really. Perhaps location. The hotel is situated on the lake and across from Lugano and getting there is no issue, free boats or buses from the hotel but that can be a bit restrictive in terms of times. There's not a lot local to the hotel, only option is a 10ish minute walk into Campione where there are a couple of bars, a very good restaurant selling all the standard Italian foods and a taverne also selling food but we didn't try this, oh and a casino. I would have been a bit fed up in terms of choice had we stayed much longer but that's probably just me wanting something different every night.
Others have mentioned language problems, true pretty much all information is in Italian with German and French translations, I don't think they expect that many English speaking visitors. We are originally from the UK but have lived in NW Switzerland for almost a year so we have some German and our daughter speaks German pretty well so no real issue for her to play with other kids. Reception were incredibly helpful with translations etc although this could be a problem for some I guess.

Overal thoroughly enjoyed our stay and would have no reservations staying here again, in terms of value for money this hotel was pretty good - for Switzerland.