I just stayed at the Red Lion Inn in Medford thru Priceline for $73 + tax &fees of about $15, for a total of $88 nt. I thought it would be a total drag to "commute" but it wasn't. The hotel was clean and the room large but that's about all I can say for it- I never used pool, healthclub and was barely in lobby- but they do have 1 computer station for guest use free. Medford had its charms- well not too many that I found. I did see they have a beautiful new library but it's closed due to budget cuts. The Friends of the Library is running a fire sale on books- some really great deals.
Had a great time in Ashland- ate well, saw plays of course, don't miss the backstage tour of the theater- you will appreciate OSF even more. You can get "scalp" tix to many things if you go before the shows.
Loved the trip. Have fun.