Actually had a similar experience at a hotel in San Jose (Courtyard Campbell) that I stayed at for a wedding. There were homeless people and prostitutes in the parking garage and when I asked the front desk if our vehicles were going to be safe, the concierge told me the people I saw were actually guests of the hotel due to some city program... I was flabbergasted and also really didn't feel safe having my 2 year old and 3 month old at a hotel like that.