Waterford has one small motel, the Waterford Inn, located about a mile north of the event.
Troy has several options including the Franklin Square Inn/Best Western and the Olde Judge Mansion, both on the CDTA 85 bus route, which will take you two blocks north of the festival. If you do not need to be on the bus route, a quick google search will give you other options.
Clifton Park is about 20 minutes north of Waterford and has plenty of hotel options for all budgets. You can find a listing of those hotels on the Chamber of Southern Saratoga County's website.
Latham is about 20 minutes southwest of Waterford and also has a number of hotel options.