We just spent two nights at Hotel Villa Cap Ferrat and we are very happy we chose it. The kids loved the big pool and everyone loved the breakfast spread. As Americans we are often appalled at what passes for breakfast in Europe but we have found the solution here. The rooms are clean and recently overhauled w/ quality fittings and the staff were generally friendly and helpful. The owner was very friendly and helpful and I think if you had a problem he would try hard to sort it out.
We were on one of the ground floor units that face the pool which worked really well with our kids (5 and 7) so they could go back and forth from the pool to the room without going inside the hotel. One day we had friends meet us at the pool and ordered a bottle of wine and was pleasantly surprised to find we were only charged 20 euro for the wine.
the only downside I found is that you could clearly see some corners being cut cost wise. The bottles of shampoo in our room were low when we moved in and empty when we left and some of the pool furniture needed attention. But I can image the outrageous expense of running such a property in South of France. In the end these things did not detract from our experience.
Location wise, the hotel is a short walk down to the port and for that matter one could walk to the Villa Ephrussi Rothschild. Cap Ferrat is a great and safe place for a break if you can afford it. People were very nice everywhere we went.
Just to expand more on breakfast if you are interested...all is self-service but you can make your own fresh squeezed orange juice, make your own boiled eggs or even fry eggs for yourself (never seen this in southern Europe). There were the obligatory croissants, pain au chocolat, bread, several types of cheese, ham, salami, tomatoes. Also cereal, coffee, milk, crepes, jams, butter, nutella. I really can't think of anything else I would have asked for. Best thing is if you book the hotel directly from the hotel's website breakfast is free vs. 12 euro per head if you book through an agent or whatever. Also, the breakfast site is outside, just by the pool. Fantastic.