Planning for 3 days in May and had hoped to stay in Varenna. Hotel options are limited, so have considered a hotel in Tremezzo. Any thoughts about this area we should consider? Thanks!

Why are hotel options limited in Varenna in May? I pulled out three arbitrary dates out of hat in May, 18th through 21st. I see 20 accommodation available just between the rail station and the Botanical garden at booking.com.
If you cannot articulate the reason for your limited options, it would be difficult for other to give you relevant info. Is it a particular range dates? Number of rooms to accommodate your party? Accessibility? Price? Which web sites you are looking at? Does it help you to be provided a long list of hotel options not meeting unstated requirements?

Really, what is the issue? I don't see many limitations, but I suppose it depends on what you need.

We based three nights in Varenna in the fall of 2017 and did a 2-part trip report on Lakes, Como, Iseo, Garda and some northern cities. The first part included Varenna: Trip Report: Part 1 Northern Italian Lakes & Cities (12 days October)

We booked an airbnb in Varenna and found that to be an excellent base for seeing Como in the time frame you have. Easy rail and ferry service to and from there.

Would you consider staying in Bellagio? We spent three nights in an apartment - Haus Bethusy - in Bellagaio on a previous trip and had a delightful stay. We had a lovely view over the town and could sit on our balcony and listen to the birds early in the morning. Bellagio was beautiful and we loved wandering the streets early in the morning. The Villa Melzi gardens there were delightful. We purchased a pass to ride the boat between Bellagio, Varenna, Tremezzo, etc. and it was easy to get around. When we left Lake Como, we took the boat to Varenna and caught the train from there to Milan. The Lake is beautiful and starting our trip to Italy there was the perfect place to vercome jetlag! Enjoy your stay.

Bellagio has more dining options than other towns in Lake Como’s mid section. Varenna is a pretty little town but personally, I like somewhere a little larger , like Bellagio, and have been there four
times.

Hi Ramsay,
Varenna is quite atmospheric and always gets our vote as a base. Have you considered a private vacation rental as opposed to a hotel/B&B stay in any of the above-discussed places? Hope all goes well.
I am done. The end.