No , never heard of it. Rent a car!
It is not a bad location. Have a look at the map of the following link:
http://www.cancun.bz/cancunmap.htm
Your hotel does not appear there, but it is by Club Las Velas.
There is a Bus system that runs back and forth the Hotel Zone and is cheap and reliable. There will be some parties close to your location including: Le Boom club and Playa Tortuga and Playa Club: Fat Tuesday. Also many of the parties will be right in the middle of the Hotel Zone (Punta Cancun) in map.