Stay in Albany
Albany provides a central location for exploring the Sensational South Coast. and features a wealth of accommodation options. Most attractions are within 100km of Albany and make for easy day trips when exploring. You'll also find the majority of nightlife and shopping in this area.
If you prefer a more rural setting, with easy access to wineries or the Porongorup and Stirling Ranges, you might want to consider Mt Barker Insead.
If you are looking for a mix of forest adventure and coastal scenery, you may want to base your accommodation in Denmark or Walpole.