Walking distance to the theater is better to have but not a requirement.
I have been to New York 10 years ago and I stayed at one of the hotels in that area(I cannot remember which hotel it was), and I have a good memory.
We will hang around in the city(city tour, museum, musical, ...) using subway so if there is any other recommended place, I am willing to try that.
I prefer a safe place so that I can take a walk at night.