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I wouldn't be surprised if people are staying as far away as Briancon, France, just over the Italian border. Recommend Auberge du Mont Prorel in that charming town!
Where have you looked? What website have you used? I'm also going to the Olympics, I have confirmation for my event tickets. Most websites won't let me see if they have rooms available this far in advance.
I have been looking at the Torino Tourist Association site and all the hotels say they are booked fully. I don't have an answer unless we wait until just before the games and some rooms will get released. Jim