Im interested and will be back in 3 weeks..... however i was wondering about the 1 year deposit money. Is it normal for the owner to collect a one-year deposit? What are the guarantees that the one-year deposit will be returned after lease is up? Your price seems fair but that is my major concern is getting ripped off on the deposit?

For a property like this, I believe a one year deposit to the landlord is standard. You will need to contact the person selling the business for further information, details were posted in the OP (the OP, or any other posters, are not the person selling the business).

It sounds an interesting proposition. Reasonable location and a good number of rooms.
The key is the deposit. When I've bought bars here, all the landlords said that the seller was breaking the terms of the lease and so the deposit was forfeited. The landlords made a new lease contract for the buyer (me), with a new deposit. This has to be factored into the agreed selling price.
This has to be carefully checked with the hotel landlord, especially with such a large deposit.
Landlords are often reluctant to change the names on the existing lease and transfer the deposit to the new buyer/tenant.
So worst case, the buyer may pay $60K to the seller, assuming that this money includes the large deposit, only to find the landlord is insisting on a new lease with a new deposit.
Best case, the seller has already agreed with the landlord that the deposit is transferable and that either the names can be changed on the existing lease contract, or a new contract will be made but the deposit is still being held by the landlord rather than being forfeited.
The problem with doing a new contract is that the landlord will usually take it as an opportunity to hike the rent up, which makes the current quoted monthly rent meaningless.

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deposits from my experience are not refunded. there is always some excuse not to refund & once its announced by the landlord that no refund is forthcoming nor is any further communication from the landlord forthcoming.
i have a hunch the present leaseholder fears this & is expecting an expat to stump up the deposit.

everytime you hand over cash, dont ever expect it to come back again, thats the golden rule here, so as for deposit either nego a refund through deduction of rent at the end of lease, or juz suck it up and amortise for the tenure of ur lease

That location gets flooded really badly fairly often. I used to live across the street, and I would see them desperately trying to keep the water out of the guest house. I would go by on a rainy day before buying this business.