There are too many good seating choices to name however you might want to get one which affords you some shade. Turn One Penthouse is about the best place, IMHO. I've had a suite on Pit Row but my feeling is that its really not a great palce to watch the race. Keep in mind that you can go pretty much anywhre you want on Friday and Saturday.
On where to stay: There are hundreds of places to stay in Indy. They are all about 20 minutes from the track. What's your budget?
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