I probably see more homeless people on my daily commute into London. I really don't think this should be a factor in staying at this hotel or not.
Compared to other major European cities and the majority off large US cities it's certainly no worse. I did not see anything that could be referred to as 'shady dealings' and walked around the area late at night on the way back from dinner and never felt any threat.
Use common sense as you would anywhere you travel and you will be fine.