You have to really hurry up to book the hotels in Varanasi, if you plan to arrive there in the beginning of March for Shivaratri.
Quick email exchange with a handful of them showed that most average-price(which at least have rooms with hot water) near-the-ghats hotels are fully booked for March 1-2.
Forget about Divya, Haifa, Temple on Ganges, Ganges view on Assi ghat.
Rashmi Guesthouse near Dasashwamed is fully booked for March 2-3 and almost no vacant room remains for March 1.
Good luck to everyone, meet you there, on ancient Varanasi ghats!
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