Yes the area is safe. Most of Manhattan is safe now.
As to the location, it's a walk to some places and the subway choices are more limited.
Being in Times Square now is quite safe also. Pedestrian walkways, less car traffic allowed than before, cafe tables for tourists to sit and rest etc. More trains obviously.
Anywhere will be fine. I can tell you NOT to go to Holiday Inn Express by Penn Station. Friends from PA stayed there and it was horrible.
Good hunting
irina