I guess it would depend on your idea of "safe" and how old your kids are, but I think so. It is a few minutes walk to the Santa Monica Pier and Santa Monica Place Mall is about 1 block in that direction, too. Next to the mall is the Third Street Promenade with movie theaters, restaurants, more shopping, and daily street performances.

There are homeless throughout Santa Monica and there are always weird people loitering, but I don't think that has anything to do with the hotel or location.