Maybe it's about proximity? There is a music festival I go to in my state where I stay at a crappy hotel because it's walking distance to the field the event is. Maybe they didn't want a long trip back and forth from shows to the hotel? I can relate
Or availability. I'm sure hotels around there fill up quick. And I'm betting it still cost way too much to stay there haha. The crappy hotel I stay in for my thing practically doubles their normal rate...."event pricing"
