That is utterly ridiculous.
For our annual football weekend in Pittsburgh, my son and I stay at the Residence Inn North Shore, which is a couple of blocks from the stadium. This year I paid $269/night, which I booked about 5 minutes after the schedule release. The next day the rates were in the $400-$500/night range...jacked up but nothing like what you shared at PSU.
$2500? That is nuts.