Where to Stay Enroute to Margaret River
 

We will arrive into Perth at 1:30 PM and don't want to have to rush to get to Margaret River for the night. I am told it is a 3 1/2 hour drive.

We would like to take our time going down the coast and were looking for ideas on a nice place to stay enroute.

Any help would be appreciated.

Also, at the moment we are looking at spending three or four nights in this area for wine tasting, canoeing, hikes, etc. Is this too much time?

Always on the Road - yes Margaret River is 3.5 hrs from Perth.
There is a place about half way down, called Mandurah, I haven't stayed there, but it is growing like mad. About an hours drive south of Perth, there is Rockingham Bay, quite a nice beach location, with marine reserve nearby for snorkelling.
Depending on where your staying in the Margaret River region, I would recommend staying the first night at Dunsborough, just out Bunbury, a few nice resorts there.

I forgot to mention, to stick to the speed limits on the drive south, as police radar units are in operation.

Always on the Road - sorry I got a bit mixed up in that 2nd last reply, the place I would recommend is Eagle Bay, near Dunsborough, and Dunsborough is not far from Busselton.
When you see the colour of sea water at Eagle Bay, you will know what I mean, just a beautiful place.

Plenty to do in the Margaret River, Dunsborough area and easily done as day trips from a center such as Dunborough or Eagle Bay.

I'd recommend staying that first night in Perth itself, or Fremantle, and getting away early in the morning for a leisurely drive down south, stopping in Mandurah or Bunbury for lunch.

I was also going to recommend staying the first night in Perth or Fremantle. I enjoyed the time we spent in those two towns. For only one night, I'd probably stay in Fremantle.

We spent 3 nights in Margaret River and we still have a lot to see on our next trip. We spent time visiting the beaches, wine tasting, visiting the caves, eating and relaxing. We didn't even have time to go hiking. The food is excellent in the region and I recommend spending an afternoon at a leisurely winery lunch. We lunched at Lamonts for marrons and trout. Excellent. If you do not yet have a place to stay, I recommend the Hilltop Studios.