Within walking distance of the Arts Hotel is Checkers Bistro, Fenz and the Brickyard. Checkers and Fenz are more upscale (especially Fenz). Checkers usually closes around midnight and would be nice for a quiet drink. Fenz is great for a quiet drink downstairs, but gets a little more lively upstairs later in the night. Both have excellent food, but Checkers gives you more for your money.
The Brickyard is a sports bar with lots of TV's and is definitely more happening on the weekends, particularly with the under 30 crowd.
There's also the Sundown Lounge across from Checker's on Mulberry. It's a small, smoky (mostly) lesbian bar, but it's usually pretty lively and loud on the weekends. They also have a great pool table and pretty cheap drinks.
Also, I spend a lot of time in that area and have never felt unsafe walking around. It's a very quiet neighborhood, as it's mostly residential.
Irish Pubs: Annie Bailey's (very lively on the weekends) and Character's Pub (quieter, but friendly/fun owners and staff). Also Quips (English Pub) is fun and lively.
Fun local places: Lanc Dispensing Co (gets a fun/funky/artsy crowd and usually has live music on weekends), 915 Cafe (can be a little snobby to non-regulars) and Marion Court (lively, mostly under 30).
All the Pubs and local places are not within reasonable walking distance at night. We do have taxis and they're pretty cheap, but expect to wait at least 45 minutes after calling for one.