We're heading to Hershey this coming weekend (and we've been down the last 5 years).
We always stay in Harrisburg off Eisenhower Blvd. There's quite a few places over there - Howard Johnson, Econolodge, Sheraton, Wyndham, Red Roof Inn and we found the LaQuinta over there as well for $79 a night.
I personally never use those auction sites because I want to actually see and know where I'm choosing from before I pay for it. Not knowing before hand leaves too much room for disaster. (Granted, I know that pictures are not always an accurate depiction of what the hotel actually looks like, based on experience..LOL).
Check expedia.com, travelocity and shop around, then go the hotels website directly and see what they're offering. You might find something nicer and inexpensive. Good luck!