Balmoral Hotel, Edinburgh
Walking into this elegant 110 year old hotel, right in the heart of the city, feels like walking into a castle. Rooms are elegantly appointed, and the hotel can provide a crib or rollaway bed for your child. The hotel swimming pool, located in the basement level, is well lit and enjoyable, but does not have a "shallow end" and would work best for good swimmers.
The Balmoral's location, on the edge of a bridge that connects the new city and the old city is ideal for sightseeing, and Marks and Spencer, about 2 blocks away, is an ideal place to pick up a picnic lunch.