We are staying at Hotel Croatia, however, there are plenty of hotels and Airbnb's in the surrounding areas.

Cavtat is around a ten minute transfer from Dubrovnik Airport.

Yes, Cavtat has plenty to see and do. Enjoy seaside walks, waterfront bars and restaurants, and a couple of small museums. Dubrovnik Old Town is a short drive away, or you can take a water taxi for a scenic (slightly longer) trip.