Since the COTA room block contracts began expiring, rooms have been slowly released back to the market. There are now 221 hotels with availability for Friday through Monday, starting at $156 in San Marcos and $234 in Austin.
http://www.hotels.com/search/search....=USD&r=2&cpr=0
Contrary to the hype, Austin was never sold out of hotel rooms. Thousands of rooms that were blocked for months are finally now being put on the market. Also, someone convinced the hotel industry here that price is no object to the typical F1 fan and that they would rapidly sell their inventory even if grossly overpriced. They also apparently were told that there will be 300K individual people descending on Austin for the race weekend. Judging from conversations I've had recently about preparations they're making, it would seem that many in the service industry still believe this. No distinction is being made between 300K total attendance and 300K individual people coming to Austin.
The 300K number is also an exaggeration. COTA itself is telling city departments and COTA employees and volunteers in training to expect 210K to 250K total attendance (40-50K on Friday, 60-80K on Saturday, and 110-120K on Saturday). Those numbers are much more realistic, imho.