hotel rooms for Guests! How much is too much?!

As a guest, I would definitely look for a cheaper option! To me that's a lot of money for one night

I think that's fine, but I'd also do a complimentary block at a cheaper hotel for another option.

Rooms are our wedding spot are between $229-300/night. BUT...we are older (I’m in my late 30s and he is 10 years older than me), so our friends and family tend to be more established. We are also only an hour from home so technically people don’t have to stay. And I won’t be offended if they stay 10 min away for cheaper. We HAVE been making it clear that if they intend to drink they need to have a plan for staying or getting home safely.
My first wedding, in my very early 20’s, I wouldn’t have expected people to stay anywhere like this. All of my friends were just starting families and that cost would have impacted their grocery budget. So in the end I think it’s just about knowing who you are inviting.