There are a number of hotels within a short drive of the Festival site. The closest recommended hotel is the Marriott Ann Arbor Ypsilanti at Eagle Crest which is located at the Huron St. exit off I-94 and can be contacted by phone at 734-487-2000. This hotel has a special rate if you mention the Michigan Brewers Guild Summer Beer Festival.
There are also many more nice hotels just 6 miles down I-94 at the State Street exit for Ann Arbor. You can search at www.ypsilanti.org/hotels.html and check out the hotels on State St., Briarwood Cr., Boardwalk Dr., and Victors Way. These properties are all just off the 1-94 exit and are the closest you will get to the festival.
There is no hotel within walking distance (unless you are a pretty serious walker).