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Most of the hotels in Bloomington are on the north side of town. I don't think there is any discounts that I'm aware of. There are a lot of hotels to chose from though.
The Fairfax Inn is a neat little place to eat about 7-10 minutes south of the track on Fairfax Road. Been a long while since I last ate there, but I do remember it was fairly good and large portions. May of changed since then, but it's still nice to promote little places like that in any town. There are also some good local places downtown [Go North on Walnut] near the square too.
As for where to sit, there is both bleachers [most of which is indeed a bit uneven in spots except the last section near turn 4] and hillside blanket/lawn chair seating in the grass areas. Most areas either way are good vantage points of the track depending on your preferences. The earlier you can get there the better though as all places and the parking lot fills up fast. Still plentiful, but will be less hassle.
The only spots that are reserved is the white boxes above the bleachers and the front row parking on the hillside in turn 4 behind the concrete blocks. These are reserved for the season by local fans.
Also, many will tell you this, but be sure to get some ice cream!
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