Best way is to catch the train. It leaves from southern cross and north melbourne quite regularly. If you catch it outside of rush hour, it isn't very crowded. Never stayed in accomodation in geelong so can't comment.
best to take the train from Melbourne to G-town, and there should be heaps and heaps of places to stay in Geelong just search around the net and book early
There is a place in town that will be near where the race is held, cant think of the name of it, but know people who have stayed there and they had no complaints. Bout to go for a drive so i'll check it on the way through.
Otherwise, there is the Mercure. its reasonable and in close proximity to the city.
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