Hold the event in the mens room and you will be "sold out" every year. Bottomline, these type of situations cause problems for all involved and each district should have the common sense to make sure they don't happen. This is when our sport REALLY becomes dangerous. When you pack people into tight surroundings, tempers flare, as this thread will attest to.
We had simular, although not as bad circumstances in D-2. For whatever reason our coaches/club directors continually vote for coaches hospitality rooms over increased mat size.