Red Roof Inn & Suites is a mile or so from the theatre, right across from the Comedy Barn.
Winter Carnival of Magic Hotel Information
Red Roof Inn & Suites
There are many other fine Motels and Hotels in Pigeon Forge with similar or lower rates. Most are not within walking distance. However, there is ample free parking at the Theater. You may wish to explore possibilities by going to: http://www.pigeonforge.com and clicking on lodging.