Hard to reach but totally worth it. Baracoa is a gorgeous area in Cuba. We only had very few time we could spend there but nonetheless we completely enjoyed our stay.
How long to stay and where to sleep?
I guess as always is best to stay 2 nights. If you come by car it is impossible to arrive during the day anyway unless you sleep over somewhere closer to Baracoa. We came from Camagüey so we arrived somewhere around 8 PM. You can check where to sleep on my blog post.