Guardalavaca, in contrast to Varadero, is a beach holiday mixed with Cuban culture and mountains, offering more of a real Cuban feel. Excellent hotels, from 2 stars to 5 stars. (In Cuba I would only recommend hotels above 3½ stars because I don't want you calling me back with complaints.)
This area of Cuba is more for the family looking for a great beach plus adventure outside of the resort.
You can take a hike in the mountains, go for a bike ride and discover the real Cuba. The scuba diving and snorkeling is much better at this (north east) end of the island, you can even snorkel right off the beach in most places.
Take a tour of the cigar factory or the pottery factory and try your hand at spinning your own pot or vase. Swim with dolphins!! Take a day trip to Santiago on the train and discover the birth-place of the Cuban Revolution, see where Fidel Castro and Ché Guevara started it all. Or stay on your resort and let Cuba come to you.