We recently stayed 2 nights in the Grand Hotel London, which is Musala's new name. Rooms are large, clean and reasonably comfortable. I wouldn't give it 5 stars, since it is obviously a product of the area, a bit old fashioned maybe, but the hotel was much better then expected. The location is fantastic, in the middle of the city center, and for your car there is 24 hour security present.
The restaurant served excellent food at extremely reasonable prices. As a hotel guest you even recieve a 10% discount on the fod and drinks bill.
I think this is probably your best bet in Varna, although the rooms don't come cheap.
