Where to stay in Playa del Carmen?

My family is planning to go to Playa del Carmen for a family reunion (about 20 people total) and was wondering if anyone has some suggestions. So far we have looked at either staying at an all-inclusive resort (Iberostar Quetzal Playacar possibly) or renting one or two houses (looking at the Playacar Phase 1 area mostly). I was wondering if anyone has some suggestions on which option we should do and where we should stay. We will have people from the age of 3 to 53. Thanks for your help!