In the US, there are chains like Embassy Suites that work well for families because they have two bedrooms separated by a living/cooking area. The fact that they're typically far outside downtown matters a lot less because we've rented a car.
In Europe, we usually didn't want to rent a car. Having 5 people was a problem with hotels because their typical limit was 4 people to a room. So being able to rent an apartment or house near downtown was wonderful.
If you don't have kids, there's nothing quite like watching your 3 kids refuse to eat the $15/each meal that you ordered. Repeatedly. And have to resort to crackers or chips from a convenience store.
It's going to be interesting to see what the outcome of the pandemic will be. We stayed on a house on a canal in Amsterdam and it was amazing. But you can see why the locals would want that house available to themselves.