Varadero is a tourist area with hotels of all categories. The beach is very recommendable but sometimes there is an offensive smell of oil depending on the wind direction.
Favourite spots:
There is a lot to see in Cuba - in Varadero not! I liked Havana very much: a very vivid city with historical buildings, very colourful. Cosy pubs, flower selling girls... you will enjoy it.
What's really great:
The spirit of the Cubans is impressive, especially against the background of their political situation.
Accommodations:
Too many very normal hotels and resorts in Varadero. But it could be the best valued possibility for a stay in Cuba and you can take it as starting basis for tours all around the island.
Hangouts:
Even in Varadero you can find a lot of nice bars, that give you the right carribean feeling.