Where to Stay in Key West, Florida: 4 Best Areas & Hotels

Planning a trip to Key West and have no clue where to stay? You’re in the right place! 

After spending some time exploring this colorful island paradise, we can confidently say Key West is one of our favorite island destinations in the U.S. 

One of the biggest takeaways from our visit was that even though the island is small and easy to get around, each neighborhood really does have its own personality, and it’s worth figuring out what kind of trip you want before booking your hotel. 

So to help you do just that, we’ve put together this guide covering the four best areas to stay in Key West, plus the top hotels for every budget. 

Ready? Let’s go!

Overview of the Best Areas to Stay in Key West

One of the best things about staying in Key West is that all the main areas are relatively close together. So even if you choose to stay in a quieter neighborhood, you’re still never far from the action when you’re ready to head out for dinner or to see an attraction. 

We typically recommend Old Town Key West for first-time visitors, since it’s highly walkable and provides easy access to the island’s top attractions. If nightlife is a priority, close to Duval Street will be your best bet. And for a quieter stay that’s close to the best beaches, you can’t go wrong with Casa Marina. 

New Town is another great area we like to recommend. It’s a bit more budget-friendly compared to Old Town and Casa Marina, offering larger hotels and easier parking. 

When it comes to getting around, walking is often the easiest and most enjoyable way to explore the island, especially in the more historic districts. Uber and taxis are also available if you need to take a longer trip, and biking is always an option, too. 

Before we get to the details, here’s a quick breakdown of each area and our top hotel picks for each: 

• Old Town Key West – Best for first-time visitors – This is the life and soul of Key West, filled with colorful conch houses and historic inns. Our top pick here is Winslow’s Bungalows, which offers a calm retreat with three private pools. 

• Duval Street – Best for nightlife – This is the island’s main entertainment strip and the center of Key West’s nightlife scene, packed with bars and live music venues. Our top pick here is the Hyatt Centric Key West Resort & Spa; it is a tranquil waterfront oasis that’s literally just a 1-minute walk to Duval Street.

• Casa Marina – Best for beaches and resorts – This area offers a quieter, more upscale side of Key West centered around larger resorts and some of the island’s best beach access. Our favorite place to stay here is The Grand Guesthouse, an adults-only bed and breakfast with bike rentals on-site. 

• New Town – Best for budget travelers – This is the more modern and residential side of Key West, offering larger hotels, easier parking, and generally lower accommodation prices. Our top pick here is The Capitana Key West, which is right on the waterfront with a private beach area. 

Where to Stay in Key West

Old Town Key West

BEST FOR FIRST TIME VISITORS

Pros

• Extremely walkable to major sights, shops, and restaurants
• Filled with historic charm, colorful conch houses, and palm-lined streets
• A great mix of history, nightlife, and laid-back island atmosphere

Cons

• Can feel a bit crowded during peak tourist seasons
• Hotels here can be pricey, especially the historic inns
• Parking is difficult and expensive if you are driving

Old Town is the version of Key West most people imagine before they even arrive, with its colorful conch houses, historic inns, and breezy palm tree-lined streets. This really is the beating heart of the island, and it will immediately put you in vacation mode the moment you arrive. 

If you choose to base yourself here on your trip, you’ll be within easy walking or biking distance of many of the island’s highlights, including the sunset celebrations at Mallory Square, the iconic Ernest Hemingway Home and Museum, the sandy shoreline at Fort Zachary Taylor Historic State Park, and the lively southern stretch of Duval Street. Basically, if you love history, fresh seafood, and simply wandering without a plan, Old Town will definitely be a good fit for you. 

That said, because it’s the most popular part of Key West, Old Town can feel crowded during peak travel seasons, especially around Duval Street and sunset hours. Hotels here also tend to be among the most expensive on the island (especially the historic inns), and parking can be super frustrating if you’re driving.

However, if you want to step outside your hotel and immediately feel immersed in the “classic” version of Key West, Old Town is hard to beat, especially if it’s your first time visiting the island. 

Ambrosia Key West – $$$

If you’ve decided Old Town is where you want to stay and don’t mind splurging a little, Ambrosia Key West is absolutely worth a look.

This charming bed and breakfast feels more like a tropical hideaway than a hotel, with bright, spacious rooms and a relaxed, home-away-from-home atmosphere. The location is hard to beat, too: you’re only about a 3-minute walk from Duval Street and roughly 10 minutes on foot to Mallory Square, which means you can easily explore Old Town without constantly thinking about transportation.

Price-wise, you can expect prices to start around $200 USD per night and climb to $400+ USD per night, depending on the season.

Another historic bed and breakfast we love in the area is The Mermaid & The Alligator. This spot is actually adults-only (perfect for a romantic getaway), and it’s only about a 5-minute walk to Duval Street. 

If both of these options are fully booked, Courtney’s Place Historic Cottages & Inns is an excellent backup. These cottages are seriously so cute, and there’s also an outdoor pool onsite! 

Winslow’s Bungalows – $$

If we had to choose just one place to stay in Key West, it would be without a doubt Winslow’s Bungalows, a collection of historic homes and cottages, including Key West’s first true motel. 

We love Winslow’s because all of the properties have such a lush, laid-back bohemian vibe. You also get access to three private pools and an outdoor Bungalow Bar with a daily happy hour (honestly, is there anything better?)

In terms of pricing, you can expect rates to typically start from around $235 to $600+ USD per night for premium cottages in peak season. 

Another fabulous mid-range option in Old Town is Island City House. This is a classic Key West-style home with hardwood floors, hammocks on the porch, and best of all, it’s only a 2-minute walk away from the historic seaport!

If you’re looking for another option, the Westwinds Inn is worth considering! It’s also a Victorian-style inn, and it’s within walking distance to both the beach and Duval Street. 

Eden House – $

For our budget pick in Old Town, Eden House is truly a hidden gem with a gorgeous swimming pool, relaxing sundeck, and a ton of character! 

Location-wise, you’re just a 5-minute walk to both Duval Street and the Key West Historic Seaport. The best part is that you’re tucked away on a quiet residential street, so you’ll always have a quiet retreat to go back to at the end of the day. 

You can expect rates to typically range from around $185 USD to $560+ USD per night, which is a solid deal considering the location. 

Another more budget-friendly pick in Old Town is The Garden House. This property is just steps away from Duval Street, and you’ll get complimentary breakfast, access to a swimming pool, and even the occasional live music in the guest house. 

Authors Key West Guesthouse is another option we love! Here you can expect seriously comfy rooms plus a small pool and a jacuzzi. 

Duval Street

BEST FOR NIGHTLIFE

Pros

• The absolute center of Key West’s nightlife and entertainment
• Incredible proximity to famous bars, restaurants, and live music
• Steps away from nightly drag shows and sunset celebrations

Cons

• Can be very loud and busy late into the night
• Not ideal for travelers seeking peace and quiet
• Accommodation tends to be slightly more expensive here

At 1.25 miles (2 kilometers) long, Duval Street is the island’s main entertainment strip and the center of Key West’s nightlife scene, packed with bars, live music venues, and casual seafood restaurants. 

If you stay here, you’ll be close to all the famous spots like Sloppy Joe’s, Irish Kevin’s, the Key West Butterfly Conservatory, nightly drag shows, and sunset celebrations. And, depending on where you stay, you also won’t be far away from the water, with the north end of Duval Street offering quick access to Mallory Square and waterfront restaurants, while the south end sits closer to beaches and quieter stretches of Old Town. 

It goes without saying, but the vibe around Duval Street is undeniably fun, and trust us when we say, you’ll never run out of people-watching opportunities. That said, staying here does come with a few trade-offs. Because you’re in the center of the action, it can get very loud and busy late into the night, especially on weekends. Hotels also tend to be a little pricier, and if you’re hoping for a peaceful, quiet escape, this probably isn’t the best fit.

However, if you’re looking to embrace Key West’s fun-loving side, you’ll definitely feel right at home here! 

Pier House Resort & Spa – $$$

When it comes to hotels around Duval Street, Pier House Resort & Spa is one of our absolute favorites. 

It’s located on the north end of Duval Street, and the biggest draw here is the private white sand beach (a rarity in Key West). There’s also a full-service spa on-site and a few legendary bars for sunset drinks. Location-wise, you’re just a 3-minute walk from Mallory Square, so you’ll be super close to the sunset celebrations that take place each evening. 

In terms of pricing, you can expect rates to typically start from around $300 USD and range up to $1,600+ USD per night during peak season.

Hyatt Centric Key West Resort & Spa – $$

For our mid-range pick near Duval Street, the Hyatt Centric Key West Resort & Spa is another excellent option. 

Just like Pier House, Hyatt Centric is also located near the north end of Duval Street. Rooms here offer stunning views of the sea and marina (perfect around sunset!). There’s also a poolside bar and terrace for relaxing, and the location is about as good as it gets; just a 1-minute walk to Duval Street and 2 minutes to Mallory Square.

You can expect prices here to begin around $280 USD per night and climb to $330+ USD for peak dates.

Another fantastic mid-range pick is Old Town Manor. This iconic adults-only bed and breakfast is simply stunning, and best of all, it’s just half a block away from Duval Street. 

We also really love the Coco Plum Inn. Like other inns in the area, this hotel is adults-only and works well for a honeymoon or couples’ holiday. 

Duval House – $

For our budget-friendly pick, we always recommend Duval House! It’s clean, comfortable, and serves up some seriously good Belgian waffles as part of the complimentary continental breakfast. 

Rooms here are simple but spacious, with some featuring private balconies and small refrigerators, while others come with a full kitchen and seating area. Location-wise, you’re near the middle of Duval Street, close to the Hemingway Home and Museum, so you’ll also be within easy walking distance of pretty much everywhere in Old Town.

Prices for this popular spot usually begin at around $135 USD per night and can even go up to $550+ USD for peak dates.

If Duval House is all booked up on your preferred dates, The Casablanca Hotel is an excellent backup. This hotel is also located directly on Duval Street and has the cutest tropical pool and sundeck. 

We also really love the Wicker Guesthouse. It’s just one block from the Ernest Hemingway House and Museum and a 10-minute walk from South Beach. 

Casa Marina

BEST FOR BEACHES AND RESORTS

Pros

• Quieter, more upscale atmosphere compared to Old Town and Duval Street
• Excellent access to some of the island’s best beaches
• Great for relaxing pool days and resort amenities

Cons

• Further away from the nightlife and main attractions 
• Accommodation tends to be more resort-focused and pricier
• You will likely need a bike or taxi to reach Old Town and Duval Street

If you’re looking for a quieter, more polished side of Key West, Casa Marina is an easy place to fall in love with and is definitely worth checking out! 

Located on the south side of the island, this area feels a bit more relaxed and upscale compared to Old Town, with larger resorts and gorgeous seafront spots like Higgs Beach, Smathers Beach, and the White Street Pier. There are also some seriously scenic oceanfront bike paths in the area, and even though Casa Marina is slightly removed from the buzz, Old Town is still only a quick bike ride or taxi away. 

In our experience, Casa Marina tends to be more popular with families and couples who want more of a classic beach vacation vibe. So if your ideal trip involves slow mornings, poolside afternoons, and resort amenities like spa treatments and oceanfront dining, staying here makes a lot of sense. You get a much calmer atmosphere compared to Old Town, but you’re still close enough to dip in and out when you want. 

Of course, staying here means you won’t be able to step straight into the nightlife and energy of Duval Street. But for a lot of people, that’s part of the appeal! 

Santa Maria Suites Resort – $$$

Our top luxury pick for the Casa Marina area is Santa Maria Suites Resort. 

We love this hotel because every room is a suite complete with a full kitchen, making it perfect for beach days and longer stays. You’re also just a 3-minute walk to the south end of Duval Street and a 1-mile (1.6 kilometers) (20-minute) walk to Higgs Beach, so you get the best of both worlds! 

What we really love about this hotel, though, is that all rooms receive freshly-baked muffins, Dove ice cream bars, and chocolate sweet treats delivered daily, which really is the dream, isn’t it? In terms of pricing, you can expect rates to range from around $260 to $500+ USD per night in peak season. 

Another nearby option we love is the Orchid Key Inn. This is an adults-only hotel, and every guest receives one complimentary drink per day at the onsite bar, which is such a nice touch! 

H2O Suites is another excellent adult-only, all-suite option. This hotel is a bit more modern in terms of decor, and some rooms even have a private pool. 

The Grand Guesthouse – $$

For our mid-range pick in Casa Marina, we cannot recommend The Grand Guesthouse enough! 

It’s located on more of a quiet residential street, and it offers everything you’d ever want from a classic Key West stay, including a lush courtyard with deck chairs, complimentary breakfast, and onsite bike rentals. It’s also perfectly located just a 10-minute walk to the Atlantic Ocean and a 15-minute walk to Higgs Beach.

Rates for this guesthouse typically start around $230 USD per night, but can climb to $300+ USD per night depending on the season and room type.

If you need a backup option, Douglas House Adult Only is a fantastic alternative. This hotel is about a 20-minute walk to Higgs Beach and has a beautiful tropical garden, sun terrace, and pool on-site. 

Another excellent mid-range pick in Casa Marina is the Southernmost Inn Adult Exclusive. This hotel actually has two outdoor pools to choose from, and there’s also a small fitness center.  

Alexander Palms Court – $

Last but not least, our budget-friendly pick for Casa Marina is Alexander Palms Court. This is honestly one of the best budget finds for the area, and we love its classic lagoon-style pool and peaceful central courtyard. 

Location-wise, it’s hard to fault. You’re just two blocks from Duval Street and two blocks from South Beach, making it easy to enjoy both the nightlife and the beach without needing to go far.

Pricewise, you can expect rates to usually begin at around $210 USD per night and climb to $470+ USD for peak dates.

New Town

BEST FOR BUDGET TRAVELERS

Pros

• Generally lower accommodation prices than Old Town
• Larger hotels with more space and easier parking
• Convenient access to grocery stores, marinas, and the airport

Cons

• Lacks the historic charm and walkability of Old Town
• You will need a car, bike, or shuttle to reach the main tourist sights
• The area feels more residential and commercial

New Town is the more modern, practical side of Key West. It’s located on the eastern side of the island (north of Old Town), and it’s known for its larger hotels, easier parking, shopping centers, and generally lower accommodation prices compared to Old Town. 

While New Town doesn’t have the colorful historic charm of the southern part of the island, it makes up for it with convenience. You’ll be close to grocery stores, marinas, beaches, and activities like kayaking and fishing charters, all while staying somewhere that often offers better value for your money.

In our experience, New Town works best for travelers who want a little more space, are driving into Key West, or simply don’t want to pay Old Town hotel prices. So if you’re planning to explore the island during the day and don’t mind biking, driving, or catching a shuttle to the main sights (FYI, most hotels offer a free shuttle!), staying here can be a smart move.

Of course, the trade-off is that you won’t be able to step outside directly into Key West’s historic streets or nightlife. But if you’d like to save some money and have a bit more space to spread out, New Town is such a practical and underrated area to stay in Key West.  

Courtyard by Marriott Key West Waterfront – $$$

Our favorite luxury-style hotel in New Town is Courtyard by Marriott Key West Waterfront. 

This is a newly renovated, award-winning hotel offering a junior Olympic-sized heated pool, outdoor hot tub, and an on-site tiki bar and bistro. Location-wise, you’re just three miles away from the airport, and about a 10-minute taxi ride to Duval Street, so you’re never too far away from the island’s best restaurants, nightlife, and attractions. 

In terms of pricing, rates for this hotel usually start around $300 USD and can rise to $600+ USD per night during peak season. 

Another option we love in New Town is Hyatt Vacation Club at Windward Pointe. This hotel offers apartment-style rooms with fully-equipped kitchens, private balconies, and a separate living space. 

You also can’t go wrong with Margaritaville Beach House Key West, which offers that classic Margaritaville experience right across the street from Smathers Beach. We always recommend this hotel to anyone considering New Town because they offer a complimentary shuttle service to Duval Street. 

The Capitana Key West – $$

For our mid-range pick in New Town, we highly recommend the Capitana Key West. It’s located right on the waterfront, and (in our opinion) offers some incredible views across the bay!  

All of the rooms here are super modern and fresh, and you’ll also have access to a private beach area, swimming pool, and onsite restaurant, which is super convenient if you’re not in the mood to face the crowds in Old Town or around Duval Street.  

Price-wise, you can expect rates around $225 to $500+ USD per night, depending on the season and room type.

Another solid mid-range option is the Hampton Inn Key West. Like the Capitana, it’s right on the water, and although it doesn’t have access to a private beach, you’re still just a half-hour walk (or 7-minute bike ride) to Smathers Beach. 

For something with a bit more personality, Havana Cabana at Key West is such a fun pick! This is a vibrant, Cuban-inspired hotel, and best of all, it’s just a 10-minute shuttle ride to Duval Street. 

Parrot Key Hotel & Villas – $

For our more budget-friendly pick in New Town, we always recommend Parrot Key Hotel & Villas. 

To be honest, nothing about this hotel really feels “budget.” The property has much more of a classic Key West vibe compared to the more cookie-cutter chain hotels in New Town. It also has some incredible amenities, including four pools, a beautiful outdoor bar and lounge area (with sea views, of course!), and complimentary shuttle service to Duval Street, which is always appreciated. 

Prices usually begin at around $165 USD per night and can go up to $400+ USD for peak dates, which is such great value for such a stunning hotel in Key West. 

Another affordable option in New Town is the Hilton Garden Inn Key West. This is a fresh, modern hotel that runs an hourly shuttle service to downtown and Duval Street. 

We also love the Blue Flamingo Resort Key West, a more playful hotel with lawn games, karaoke nights, and poolside cocktails. Like other hotels in New Town, you’ll also have access to a complimentary shuttle service, which can be a real money-saver on days out! 

Top Activities to do in Key West

Now that you know where to stay in Key West, it’s time to start planning your adventures! From wildlife encounters and sunset sails to exploring the island by bike, there are plenty of memorable ways to experience the Southernmost City. Here are a few of our favorite things to do in Key West!

• Kayak through the mangroves – Escape the crowds on this small-group kayak tour through Key West’s mangrove forests. We loved seeing a quieter side of the island while spotting marine life and learning about the unique ecosystem from our knowledgeable guide.

• See sharks and wildlife up close – Get out on the water aboard this eco-friendly catamaran cruise through the Key West National Wildlife Refuge. We loved watching sharks, dolphins, stingrays, and sea turtles while learning fascinating facts from the passionate crew.

• Watch the sunset from a catamaran – Skip the crowds at Mallory Square and enjoy Key West’s famous sunset from the water on this sunset cruise. With live music, tasty appetizers, and drinks included, it was one of the most relaxing evenings of our trip.

• Explore the island by bike – Cover more ground while learning about Key West’s history on this small-group bike tour. We loved cruising through colorful neighborhoods, visiting famous landmarks, and finishing the ride with a delicious slice of Key lime pie.

• Sail, snorkel, and kayak in one day – Make the most of your time with this all-inclusive full-day adventure. Between snorkeling, kayaking through mangroves, sailing aboard a schooner, and enjoying lunch and drinks on board, this tour packed a lot into one unforgettable day.

Related Read: Want help putting it all together? Check out our 3-day Key West itinerary for the exact route we’d recommend, including where to eat, what to see, and how to make the most of your time on the island.

Thanks for reading!

For such a small island, Key West packs in a surprising amount of variety. One minute you’re strolling past historic conch houses in Old Town, the next you’re listening to live music on Duval Street, soaking up the sun in Casa Marina, or enjoying the extra space and value that New Town offers. Whichever area you choose, you’re in for plenty of sunshine, sunsets, and Key lime pie.

The planning doesn’t have to stop here! Browse our other USA travel guides for even more ideas, hidden gems, and itinerary inspiration. Or have a look through some of our favorite travel guides below for more places to add to your bucket list!

Where to Stay in Miami, Florida: 5 Best Areas & Hotels

How to Spend THREE DAYS in Naples, Florida: 3-Day Itinerary

How to Spend 3 DAYS in Fort Lauderdale, Florida: 3-Day Itinerary