Hotels too expensive during F1?

I recently met some visitors who were here for the Formula One (F1) race, and they said they could only stay for the duration of the race days, as the hotels were charging too much.

Having to pay S$400 a night is a high price, and we may eventually lose visitors.

Surely hotels can be more reasonable and not scare away other tourists who might be happy to visit Singapore during this time of the year if accommodation were priced more attractively.

Also, perhaps the race organisers could provide some good deals to make visits here more affordable.