You're pretty spoiled for choice in terms of places to stay nearby. We recommend that, unless you actually live in Victoria itself, you stay in Sidney instead. It's much closer to our venue and will involve far less traffic. However, if you'd really rather stay in the city, there are plenty of options for there as well.
Here are some suggestions if you do plan to stay in Sidney and around.
Hotels and Inns
The Sidney Waterfront Inn and Spa
A lovely spot right on the waterfront.
Best Western "Emerald Isle"
Closer to the highway, but still within walking distance of everything in town.
The Beacon Inn
A small, very nice B&B-style inn.
The Cedarwood Inn and Suites
A little further outside of 'town' proper, so not ideal if you don't have your own transportation, but it's quiet and on the water.
Quality Inn Waddling Dog
If you want to stay really, really close by the venue, you can check in to the Waddling Dog, which is literally across the highway and five minutes up the road. There's not much nearby, but if you have a car, this could be a good option.
Bed and Breakfasts
Corbett House
Right in the heart of downtown Sidney.
Alder Road Retreat B&B
A little further out, closer to the ferry terminal.
Really Roughing It
McDonald Park Campground
Part of the Gulf Islands National Park Reserve, with a very nice little campground not far from the ferry terminal.