I Go There Often...
Since I have family north of Knoxville, I go there often and have also attended the last 3 Hoots. I was raised in Fountain City (North Knoxville) and used to own a house in Maynardville (North of Knoxville and along one of the rides for the Hoot). Anyway, here's the deal....
East - Strawberry Plains and such off I-40. Not a bad area now. Has some decent hotels and the Honda dealer (if you need them) is right off Exit 407. Convenient to Chilhowee Park. Easy access to the Welcome Party at the Marriott if you stay on I-40 West and don't get on I-640 West.
North - I-75 has lots of hotels at the Merchants Road exit. A mile further is Callahan Road and a mile more is Emory Road. All of them have a decent number of hotels, with Merchants Road having the most. (I'm staying at the Quality Inn off the Callahan Road exit.)
West - I-40 west of Knoxville has a lot of hotels along the way, but the truck traffic on I-40 is very heavy and there are a few truck stops out that way, so it is busy. (Make that VERY busy.) The "Tech Corridor" for Knoxville is out that way, so there is lots of traffic. It is a good area, though. I can't say it's not.
South - Nothing significant. About the only thing you find south (along US441) is businesses and residential stuff till you get close to Sevierville.
**To those that are retired military, check into Government Rates. Sometimes they are lower. I don't know if all hotels honor a retirees ID card, but I do know that the Choice group (Comfort Inn, Quality Inn, Sleep Inn, Clarion, etc.) does. (Just something to keep in mind.)
Hope this helps.