A more budget-friendly alternative would be Edge Of The Forest, which is 3-star accommodation with room rates from 95£. For a cheap hotel that's centrally located, you can try Grange On Farrelly Margaret River Motel near Wooditjup National Park, which is 400 meters from the city center. Rosewood Guesthouse is an affordable choice that is directly adjacent to Life Cycle Bikes and offers room rates from 129£.
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If you're looking for a homey place to stay, consider The Traill, located beside Bellview Shell Collection. For a family holiday, check out Margaret River Guest House, a kid-friendly hotel that comes with a sundeck and a sun terrace. Make sure to choose Margarets Forest near St. John The Theologian Memorial Chapel - a top-rated resort with views of the garden.