I would not recommend this place at all. I have been going to Cuba for over 10 years, believe me unless you are a carefree person, you don't want to stay in Varadero in anything below a 5 star!!
The OP stated he has a budget of $80/night. How does one stay at a 5-star resort for that price during the February high season?
The state-managed hotels are definitely a step down from the foreign-managed ones. That doesn't mean that a traveler can't stay in one and even enjoy it.