With a bit of research (betterbidding.com) and using Priceline you could probably get a much, much better deal. The area on Priceline, State College North, would only be a few miles away. Priceline Express hides the name of the hotel, but they have a 2.5 star for $63, that betterbidding.com says is probably Fairfield Inn and Suites by Marriott. You can also name your own price.... Better bidding has lists that try to identify which hotels you would likely get by bidding.
Personally, if I were looking I would bid about $55 dollars on Priceline for a 2.5 star in State College North.... You would probably end up at Hampton or Holiday Inn Express right off the Toftrees exit on 322, or Possibly the Fairfield mentioned above. You could walk to Olive Garden, Texas Roadhouse or Outback from the first two hotels listed.
These prices can change quickly based upon demand.