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We try and work with the hotels to keep the prices down every year, but its the old supply and demand model. What we did start doing and have had awesome feedback is offering cheaper lodging ($90-$100) a night, at the local University dorms, it can be especially fun if you have a running partner to join you. The busses pick you up right from the dorms, works out nicely.
http://grandmasmarathon.com/site/index.php?page=college-dormitories
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