I have been doing my research, it looks like the verdict is that Posada Del Mar is a good place to stay for families with little ones.
Any other suggestions? We aren't necessarily looking for a budget hotel, just something decent and nice but not luxurious.
We want a nice safe beach, good swimming pools, good bars, food, and preferably a place where we can leave the babies to nap in the room and have a balcony or bar within very close range to the room so we can hook up our monitors and be able to still enjoy ourselves with the babies sleeping close by.
We want to have a lot of fun with the other couple we are going with, but we definitely want to take our babies and make it a fun family trip too!