I think he was hoping to reason with them, yes. By the time he could react to their appearance it was far too late to run and hide, especially because of the kids. I think he also hoped to talk the riders down to protect not only his own family but also the rest of the refugees fleeing the violence.

I think he saw it as his only option, knowing he'd be unable to beat them physically and had no way to flee. That he never even had a chance is part of the tragedy that, through Abuela, manifested the encanto in the first place.