I stayed there in March 2011 for one week. I got the package from the east cost of Canada as a single for about $650. This included flying to Varadero, the shuttle van back and forth to Havana and the room which includes breakfast. So I'm the queen of budget travel and have stayed in some pretty swarmy places but have paid way less for the privilege and normally don't complain much. A few years back I went to Varadero with a friend for $585 in a 1.5 star and had a much better experience room wise.

To start with the little good ...
1) Currency exchange in the hotel
2) Decent location in Vedado
3) Breakfast with eggs is good
4) Cafe TV much further down has a great full meal for 3.50 CUC and other cafe's have reasonably priced food and drinks
5) Tour operators located in the lobby most times.

Other not so good ...
1) Floors never cleaned the whole time I was there, I had to wear shoes or slippers (but then I didn't complain either).
2) Lights in hallway out late at night
3) Soundproofing is nonexistant - the doors are the old doors with wooden slats at the top so you could see out into the hallway, etc.
4) Shower would sometimes come in cold or not at all and are mostly hand held so used a bungie cord to tie it up somewhat (but a regular patron suggested bringing a wire coathanger); bathroom had missing tiles and depending on the room water could seep out into your room if you didn't have the shower curtain just right
5) Internet was down the whole week I was there
6) Sometimes elevator not working, but only 5-6 floors so not end of the world
7) Other food at breakfast not so appetizing which we all know is not surprising but with the limited selection it makes it more a challenge to find some happy food to eat; the wonderful bread I used to have in Cuba must have been on strike that week so it was only hard dry little slices or rolls, and coffee was the worst I ever had in Cuba :( (but there was a great espresso bar a few blocks away that made up for it).
8) Front desk didn't speak hardly any English and my Spanish is still very limited (although I work on it every year). And they never got friendly even with the friendly east coaster ... I know many people say service isn't the best but I've found that I'm usually able to win them over by just being myself! They weren't mean, just didn't warm up to me or anyone else for that matter cause I was watching! You had to know what to ask them because they didn't offer up any information. (But the tour operators were quite lovely of course even though I didn't end up going on one of their tours).
9) Not sure how often the sheets were changed but again I didn't ask. The beds as are most in Cuba, hard, and pillows like thin pancakes (but then again the same as it was in the 1.5 star in Varadero).

So to stay there again, it would be more like under $500 - which it can be for those from Toronto or Montreal. Likely I'll wait last minute and try to find a discounted charter flight and then stay in a casa particular for a week. I visited some while I was there (and had stayed in one about 4 years ago when we went to Havana for the night) so will likely be my next trip. Unless of course I can find a package that is less than buying the flight on my own as sometimes happens, especially to the beach area outside of Havana. At one point Terrazul was only $465 return taxes in per person based on 2 people for 1 week! I'd stay there the first night and the last night but then zoom over to Havana for a casa stay if I felt the need or travel back and forth if I had too.

But in the end, for me it's the price that makes the difference. It seems that Havana has higher prices compared to Varadero (but there you get all inclusive at least) so if that's where I like to go I'll just have to bite it. Or there's always the option to get a cheap package to Varadero and then leave for about a week going elsewhere.

So if you wonder about my validity for this type of trip, then know that I'm strictly a budget/non-resorty type of person. I've lived in China for a number of months and when I did travel there, we had our moments. I've never stayed a resort/hotel higher than 2 star when travelling (except for once this June when I went to D.R. to a 3.5 star which is another story). In North America I either hostel or couchsurf (look it up!). So I've had my fair share of 'experiences' :) Cheers.