One of Western Australia's most popular tourist regions, Margaret River is a town amidst a sprawling region of vineyards, breweries, beaches and forests. In the immediate vicinity are more vineyards than you can shake a stick at (I hear Vasse Felix is good - I haven't been), at least two breweries, three major caves and almost innumerable beaches and forests.
The YHA is somewhat pricey, but Margaret River accommodation is, apparently, so I guess you have to deal with it. The double with en suite is pleasant, with TV and fridge as well. Free tea and coffee, with a jug in the room is a nice touch as well.
We headed down to Prevelly Park, the beach closest to Margaret River, for dinner in the evening. The Gnarabar, next to the Surfer's Point Resort, serves great food in the restaurant, as well as tasty sounding bistro food (for much lower prices).
No locations available.