Cuba Hotels and Hostels

You have a handful of options for hotels in Cuba. For obvious reasons, you will not find any American hotels in the country, but you will find many locally run options that offer you a wonderful experience. Most towns have at least one state run hotel. It is usually located in an old colonial building that has been restored. There are also some very nice Cuban resorts and high end hotels that you can find throughout the country.
There are some strict restrictions on accommodation in Cuba. It is illegal for a resident to house a foreigner in the home for free. If you're caught you will likely end up with a large fine, so this option is best avoided. It's not with the risk, and you don't want to end up in legal trouble in a foreign country.

Finding the Best Prices

As previously mentioned, it is illegal for a foreigner to stay for free with a local resident. For this reason couchsurfing is not advised. There are some great, affordable options in Cuba however, so couchsurfing is not a necessary option anyway. Consider staying at a casa particular. These are privately owned houses that are licensed with the government to house foreigners. They are typically priced very reasonably and can offer a fun experience. Also avoid going with a jineteros, or hustler, who might approach your bus and offer to show you some accommodation. They will receive a kickback from any place you stay, and you will be paying that kickback. It is better to locate accommodation on your own. Do keep in mind that any time there is a commission being paid, you are the person paying it. If you can avoid commissions, this will save you some money.

Types of Accommodation

There are several types of accommodations in Cuba. You can find some nice resorts and hotels that make for an enjoyable holiday. Alternatively, you could stay at a casa particular, which, as mentioned above, are privately owned facilities that are licensed to house foreigners. They are cheaper than the hotel alternative and often come with a very descent breakfast. You can stay in state run hotels which exist in most towns around Cuba. They are usually located in a refurnished colonial building.
Particularly in casa particulares, do keep in mind that you will be charged for any extras. Rides, water, and other amenities are often tacked on the bill for relatively high prices. Ask ahead of time before you enjoy any of these features so you are not caught off guard with an unexpected surprise.
Also remember to avoid the touts who will take you to specific hotels where commissions are paid. You will do better finding your own accommodation ahead of time and avoiding that mark up.