I would just keep your reservation. It's three nights and will give you a different perspective on the beach and roundabout.

While it is "far" from some of the more frequented spots on the beach, most people don't mind a walk during the day.

I would very strongly recommend you take a taxi to and from the hotel anytime after sunset. It's kind of a "dead spot" in the road with very few businesses and the lighting is basically non-existent at night.

I would also say to take a taxi pretty much anywhere else on the beach road at night, so in that sense, it really doesn't matter where you are staying since you'll want a taxi to any hotel on the beach anyway.