4411 Inn & Suites is an adorable boutique motel. The motel will only book 2 nights, and is minutes from both the wedding venue and the Indiana Dunes if you wanted to make it a full weekend. Reservations must be made by May 20th under the wedding block to get the discounted room price.
There is also the Blue Chip Casino which is very close to the venue as well, and they allow 1 night reservations.
Michigan City is roughly 1 hour from Chicago, so it is feasible for guests to attend the wedding without a hotel room.