Here are some area motels:

Holiday Inn Express - (831) 728-9600

Best Western Inn - (831) 724-3367

Red Roof Inn Watsonville - (831) 740-4401

Comfort Inn Watsonville - (831) 728-2300

Watsonville Inn - (831) 724-8881

Motel 6 Watsonville - (831) 722-1173

National 9 Motel - (831) 724-1116

You can click on any of the underlined motels above to go to their website for rates, or you can call them direct.  You might also want to Google for hotels/motels in and around the Santa Cruz County area, or even Gilroy, as they are right "over the hill" from the Fairgrounds.  Oh and remember if you've got an RV we have camping available on the Fairgrounds for $25.00 per night.