For some alternatives, try the Prom Country Lodge and the Meeniyan Motel. They are located 25 kilometres and 25 kilometres respectively from the center. If those two aren't the best fit, you can try the Venus Escapes or the Wilsons Promontory Motel.
The nearby localities of Cape Woolamai and Morwell are worth checking out. Cape Woolamai is 70 kilometres to the northwest of Waratah, while Morwell is 70 kilometres to the northeast. Hotels in Cape Woolamai include The Island Accommodation - Hostel and San Remo Hotel Motel. The Comfort Inn Cedar Lodge and 503 On Princes Drive are some of the options in Morwell.
Hotels in Waratah start at AU$99 per night. Prices and availability subject to change. Additional terms may apply.