This is a lovely and, I think, underrated Normandy coastal vacation town. It has a beautiful stone beach front, long pier, shop area, and boat harbor. The place is full of history - especially the ill fated allied raid on the German occupiers during WW2. You can also take the ferry from here, to cross the channel to England.
My wife and I spent the day here, and met a lovely French woman who had lived at the little cove hamlet of Puy, just to the north of the main town, all of her life. Ah the stories she had to tell!
There were many hotels and restaurants in Dieppe, but, since we didn't spend the night, we cannot speak to their quality - though we saw many folks apparently enjoying themselves at the the many street cafes along the boat harbor.
This is a highly recommended stop along the Normandy coast.