Is the hotel in a good neighborhood

Not good necessarily but not the worst.

It's in a section south of Tacoma Dome with other motels, restaurants, and fast food joints. It's not a terrible spot but the parking lot seemed to fill up with slightly unsavory types. Your experience may differ, of course.

Mostly shops and restaurants surrounding. Seemed like a decent area.

Not really in a neighborhood. More like a commercial strip. Closest 'neighborhood' is 4 city blocks away behind the commercial strip.