Key West is the final stop along the Florida Keys and is the Southernmost Point of the Continental United States – you can even take a picture with a cute stumpy statue to mark the occasion! 

This STUNNING vacation spot attracts sun-seekers from across the country every year. Hundreds of thousands of tourists flock to enjoy the Caribbean climate, chilled out nightlife, and pristine beaches of Key West.

This island might be small, but is so full of things to do that it’s impossible to fit it all in on one trip. It can also be a monumentally expensive place to visit (if you don’t know where to look!) 

For this reason, it’s really important to plan your itinerary in advance. Each neighborhood offers something unique to travelers, so it’s a good idea to know exactly what to expect. 

That’s where I come in! I’ve combined my personal experience with hints and tips from locals and tour guides to bring you this guide to the four best places to stay in Key West. 

Whether you’re looking for bustling nightlife, peaceful coastal escapes or simply somewhere cheap to enjoy the sunshine, we’ve got you covered.

So, let’s dive right in…

blue house with white gate surrounded by greens and greenery
There’s nowhere like Key West.

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Where is the Best Place to Stay in Key West?

With something for everyone on offer, it’s no wonder Florida’s coast is such a popular destination among travelers in the USA. It’s the perfect spot for a family holiday, a wild weekend with your besties, or a relaxing break by the coast!

Whether you’re looking for a stunning historic property with an outdoor pool or a stylish boutique hotel with a complimentary breakfast. I’ve got you covered with the best hotels and Airbnbs in town!

H2O Suites | Best Hotel in Key West

H2O Suites Key West

Kick back and relax in the heart of the Historic District in of the best Key West hotels on offer. It’s adult-only, so you won’t need to worry about noisy kids running around the place.

The guest rooms are beautifully decorated to create a bright and airy vibe and the outdoor pool is surrounded by palm trees. Most of the main downtown Key West attractions can be accessed on foot including the historic seaport and Key West lighthouse.

Not Your Average Hotel | Best Hostel in Key West

Not Your Average Hotel Key West

Yes, my friends, Key West is home to a hostel! The legends at Not Your Average Hotel are providing us, backpackers, with a semi-affordable boutique hotel to stay.

Home to three pools and two jacuzzis, I can assure you that you’ll more more than comfortable here. The hostel is located in the Historic Seaport/ Downtown area and verrrry close to Lower Duvel Street if you’re up for making some friends and heading out to party.

Key West Yacht | Private Houseboat in Key West

Key West Yacht Key West

Everyone who visits the Florida Keys dreams of having their own yacht – and this bed and breakfast in Florida will turn those dreams into reality. It’s officially moored in New Town, but you’ll also be just a short walk from Smathers Beach and Key West’s historic seaport.

Of course, being a boat and all, you can take it anywhere you want along the coast of Key West including sailing around the southernmost point of the USA.

Key West Neighborhood Guide – Best Places to Stay in Key West

FIRST TIME IN KEY WEST
Lower Duval Key West
FIRST TIME IN KEY WEST

Historic Seaport/ Downtown

The Historic Seaport area is located in the northwest area of Key West – it is easily the most touristy part of the time. If you base yourself here you’ll be within walking distance of most of Key West’s top attractions and things to do. Hence it’s a pretty neat spot to base yourself in if it’s your first time heading to Key West.

ON A BUDGET
ON A BUDGET

Old Town

To the east of the Old Town lies the New Town! As you can probably gather from the name, this is the more modern part of the city. It was built to be a mostly residential neighbourhood, and whilst it still is, there are some great accommodation options popping up along the coast.

NIGHTLIFE
NIGHTLIFE

Duval Street

The entirety of Duval Street is within the Historic District, but in many ways, it is a neighbourhood in its own right. Upper Duval, on the south end, is pretty peaceful, but Lower Duval, on the north side of the city, is where you will find the best nightlife in town.

FOR FAMILIES
Key West, Florida Keys 1
FOR FAMILIES

New Town

As you can probably gather from the name, this is the more modern part of the city. It was built mostly as a residential neighborhood, and whilst it still is, there are some great accommodation options popping up along the coast – particularly for those traveling as a family!

Key West might be small, but it is an incredibly diverse destination when you scratch beneath the surface. Each of Key West’s neighborhoods offers something different from the rest, and where you stay can really make or break your trip.

Thankfully, getting around is super easy even for those who don’t have a car. It’s even easy to get to Key West International Airport with the shuttle service.

Home to Malloy Square, the infamous Duval Street nightlife, and loads of attractions – the Historic Seaport/ Downtown area is ideal for anyone heading to Key West for the first time. However, this area can be busy! Luckily, there are loads of waterfront resorts to retreat to after exploring.

wooden walk way down to the beach with swaying palm trees and the sea in the background
Key West is a dreamy vacation spot.

The Key West historic district, also known as the Old Town, is the beating heart of the area. Nestled just between the Historic Seaport area and Casa Marina, this area is packed with things to do. If you’re traveling on a budget to Key West, this area offers a few more affordable BnBs and even a hostel!

Lying to the east of Old Town, New Town is a more modern neighborhood that is growing in popularity with visitors. Previously a residential area, it’s also one of the cheaper places to stay in Key West however transport and parking in to see the tourist attractions can add up.

Key West is arguably the best place to stay in the Florida Keys for nightlife, thanks to vibrant Duval Street. You’ll find bustling parties, chilled-out bars, and everything in between in this neighborhood. During the day, it’s a popular shopping area as well as being close to the Key West historic seaport.

Still undecided? I’ve got some more information about each neighborhood below, as well as our top accommodation picks, things to do in each area and a few hidden gems in Florida.

Key West’s Four Best Neighborhoods to Stay in

There are many interesting experiences to be found all around Key West, but where should you stay? Each neighborhood has its own vibe. I’ve rated the top neighborhoods to stay in when you visit Key West below.

1. Historic Seaport/ Downtown – Where to Stay in Key West for Your First Time

The Historic Seaport area is located in the northwest area of Key West – it is easily the most touristy part of the time. If you base yourself here you’ll be within walking distance of most of Key West’s top attractions and things to do. Hence it’s a pretty neat spot to base yourself in if it’s your first time heading to Key West.

Sun set over the sea at Lower Duval Key West
The sunset views here are UNREAL.

Home to Key West’s well-known Mallory Square, the Historical Seaport (obviously), and a LOAD of epic nightlife on Duval Street – don’t worry, I’ll dive into Duval Street more soon.

Although it’s got all the attractions, which makes it convenient for first-timers to see it all – it’s not my favorite part of town as it can be quite loud and lacks the charm you’ll find in other neighborhoods (unless you’re here for the nightlife – then basing yourself close to Duval Street is a must).

Ocean Key Resort & Spa | Best Hotel in Historic Seaport/ Downtown

Ocean Key Resort & Spa Key West Florida

Ocean Key Resort is THE creme da la creme of hotels in the seaport, offering luxury at its best. In the prime sea view location, you can marvel at the sea view all day long. What’s even better? You can do so while lounging around the gorgeous pool and poolside bar around.

If you’re heading to Key West with cash to splash, I’d be splashing it here if I were you.

Opal Key Resort | Another Great Hotel in Historic Seaport/ Downtown

Opal Key Resort Key West Florida

Opal Key Resort is another banger of a hotel located on the waterfront boasting magnificent views across the sea. The location is ideal, nestled nicely into Mallory Square (where all the action happens).

The rooms are immaculate and the staff go above and beyond to make your stay the best it can be. I’d 10/10/ recommend this spot.

The Bartlum | Best Apartment in Historic Seaport/ Downtown

The Bartlum Key West Florida

The Bartlum offers the perfect home away from home in the Historic Seaport area. The decor is bright and cozy, welcoming you in as soon as you step inside. The apartment has everything you need to be comfy, including a fully-equipped kitchen if you want to cook for yourself.

You’ll be nice and close to where the action is in Key West—Duval Street & Mallory Square are just a short walk.

Things To See and Do in Historic Seaport/ Downtown

  1. Visit the Key Shipwreck Museum.
  2. Party on Lower Duval Street.
  3. Hang out in Mallory Square.
  4. Join a Jet Ski Island Tour.
  5. Hop over to Truman Annex to check out the Trueman Little White House.
  6. Explore the delicious food scene in Bahama Village, just a block away.
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2. Old Town – Best Place to Stay in Key West on a Budget

Key West Historic District, also known locally as the Old Town is where the city first began. This is where you will find the most iconic architecture in the city, as well as the bulk of local attractions.

The Old Town can be expensive, however it is home to a few more affordable Airbnbs and a hostel which helps make a trip to Key West slightly more achievable for us backpackers!

tourist tram ride going through the old town in key west
Discover the history of Key West in the Old Town

The Old Town is also the best-connected part of the city. It sits literally in the center of Key West, so you can easily reach all of the other neighborhoods mentioned in this guide on foot as well as Key West International Airport. This is perfect for those who don’t have access to a car.

The Gardens Hotel | Best Hotel in Old Town

The Gardens Hotel Key West Florida

If you’re looking for the best place to stay in the Old Town, this has got to be it. The Gardens Hotel is a gorgeous spot, nestled right in the center of the action. The hotel itself is an oasis away from the hustle and bustle, it’s full of hidden spots to relax in (my fav being the hammock).

Enjoy chilling by the pool and getting served a banger breakfast each morning. Don’t just take my word for it either, these guys get some absolutely raving reviews!

H2O Suites | Another Great Hotel in Old Town

H2O Suites Key west

Straddling the boundary between the Historic District and Casa Marina, this is a fantastic choice if you want to stay close to the action whilst still enjoying a calm atmosphere.

This four-star hotel is a little bit of a splurge, but the luxury extras make it worth every penny. Rooms incorporate modern technology and stylish fittings to create an upscale vibe, and some even have their own private pools!

Not Your Average Hotel | Best Hostel in Old Town

Not Your Average Hotel Key West

Key West is a pricey destination, especially the Historic Old Town. There aren’t many hostels in Key West, but backpackers don’t need to feel left out! This boutique hotel is designed with budget travelers in mind and comes with a FREE breakfast.

Rooms are simple but well priced – but that doesn’t mean you miss out on small splashes of luxury. It also has some great communal areas as well as a pool making it one of the best hotels in Key West for the price.

If you’re wondering where to stay in Key West on a budget, this is it, my friend!

Hidden Beach | Best Airbnb in Old Town

Hidden Beach Key West

This love nest is located right on the coast and includes an outdoor pool! It’s actually on the only natural beach in Key West and comes with stunning Caribbean views.

There is a small decked area where you can sit back, relax, and enjoy a couple of cocktails with the gorgeous Key West sunset. Sleeping up to two people, this is our top pick for couples heading to the city. It’s one of the most romantic Airbnbs in Florida!

Things to See and Do in Old Town:

  1. Duval Street isn’t the only nightlife in the city. Hit up some local favorites in this tour of Key West’s alternative bars and clubs.
  2. Key West is home to the Southernmost Point in the Continental United States – you can take a guided tour of the best attractions in the area on this experience.
  3. Pop down to explore the quaint Casa Marina Key West area.
  4. Famous writer Ernest Hemingway spent his late years in the Caribbean. Check out his Key West residence and learn more about his work at his former house.
  5. Jump on the Old Town hop-on hop-off trolley tour of the town!

3. Duval Street – Best Area to Stay in Key West For Nightlife

Key West is the best place to stay in the Florida Keys for nightlife, and Lower Duval is where you’ll find it! The entirety of Duval Street is within the Historic District, but in many ways, it is a neighborhood in its own right. Upper Duval provides a more peaceful location that’s still close to the action.

Durty Harry's bar sign with sloppy joe's bar in the background on Duval Street, Key West
Duval Street is bustling 24/7

Lower Duval is also home to some of the best shopping boutiques on the Keys. You’ll also find some great restaurants and cafés dotted around the area. In many ways, this is the city’s entertainment district.

Simonton Court Historic Inn & Cottages | Best Hotel in Duval Street

Simonton Court Historic Inn & Cottages Key West

This four-star hotel has a unique atmosphere that will make you not want to leave. Built within a historic cottage, this inn has thoughtful extras to enhance your comfort throughout your stay.

The outdoor pool deck is a little cozy, with plenty of plant life to add a laid-back vibe to the whole affair.

Pier House Resort and Spa | Another Great Hotel on Duval Street

Pier House Resort and Spa Key West Florida

Pier House Resort is one of the best resorts on Duval Street – located at One Duval Street, they kick the street off strong. The resort is located right on the beach with direct access to the sand. You can also treat yourself to the on-site spa whenever you please!

With a swimming pool and fitness center on-site, you’ve got no excuse not to keep fit while you travel!

Historic Caroline | Best Airbnb near Duval Street

Historic Caroline Key West

This Florida Keys Airbnb is a little more basic, but with prices this cheap, I’ll take it! It only has one bedroom, making it a great choice for couples and solo travelers planning to hit up the local nightlife. It’s only one street over from Duval Street and about a one-minute walk from the boardwalk area. Guests also have access to a shared pool deck.

Things to See and Do in Duval Street:

  1. Discover the hippest bars and quirkiest cocktails on a pub crawl through Duval Street and Historic Key West.
  2. Take to the seas on this sunset sailing trip with an open bar, food, and music.
  3. Truman Annex is a great spot to kick back and relax. It’s also where you can look into booking a cruise of the Caribbean if that takes your fancy.
  4. Visit the Key Shipwreck Museum.
  5. Visit the southernmost point of the continental USA as well as the Key West lighthouse and Key West’s historic seaport.
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4. New Town – Best Neighborhood in Key West for Families to Stay In

If you head east from the Old Town (toward Stock Island), you’ll find yourself in New Town. As you can probably gather from the name, this is the more modern part of the city. It was built mostly as a residential neighborhood, and whilst it still is, there are some great accommodation options popping up along the coast – particularly for those traveling as a family!

The area is quiet and modern, it’s the ideal spot to return to after a busy day of exploring Key West’s attractions. The hotels here often provide better bang for your buck compared to the more touristy areas of Key West.

waterfront properties in Key West, Florida Keys

New Town is also a major shopping destination, housing the largest mall in the city. North Roosevelt Boulevard is the beating heart of the neighborhood. This is where you will find some of the best shopping bargains and cheapest restaurants in the city.

It’s also super close to the Key West nature preserve where you’ll find the southernmost point of the USA.

The Capitana Key West | Best Hotel in New Town

The Capitana Key West

This hotel is a more affordable option for couples and solo travelers. You’ll also get to enjoy all the additional services and convenience associated with staying in a hotel.

Located right on North Roosevelt Boulevard, you’ll be within walking distance of some of the most budget-friendly shops and restaurants in Key West. It’s one of the best hotels in Key West.

Parrot Key Hotel & Villas | Another Great Hotel in New Town

Parrot Key Hotel & Villas Key West Florida

This GORGEOUS hotel is another absolute gem to stay in New Town. Parrot Key Hotel provides spacious, clean guest rooms with an insane view across the sea. With not just one, but four pools, you can spend your days rotating your swims between the pools and the sea.

I would note that the Parrot Key Hotel charges a daily resort fee and if you have a car you must use their valet parking.

Key West Yacht | Cute Houseboat in New Town

Key West Yacht Key West

It doesn’t get any more Florida Keys than this! This boat is moored in New Town but you can take it anywhere you want around the city.

Want to travel further afield? You can also hire an experienced Captain to take you on day trips around other Keys. It’s powered mostly using solar energy, making it a great choice for more environmentally-conscious travelers.

Things to See and Do in New Town:

Smathers Beach Key west
  1. Soak up the gorgeous coastal scenery in this laid-back kayak tour taking in the mangrove mazes surrounding the Keys.
  2. Key Plaza is the largest mall in the city, housing local boutiques, international brands, and a large food court to suit all budgets.
  3. Take a trip over to Dredgers Key – it’s mostly a residential island, but it’s a popular spot for fishing in the city.
  4. Chill out for the day at Smather’s Beach.
  5. Check out the Fort East Martello Museum.
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FAQs About Where to Stay in Key West

Here’s what people usually ask me about Key West and the best areas and places to stay on the island.

What To Pack For Key West

Pants, socks, underwear, soap?! Take it from me, packing for a hostel stay is not always quite as straightforward as it seems. Working out what to bring and what to leave at home is an art I have perfected over many years.

Product
Description
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Don’t Let Snorers Keep You Awake!

Ear Plugs

Snoring dorm-mates can ruin your nights rest and seriously damage the hostel experience. This is why I always travel with a pack of decent ear plugs.

Keep your laundry organized and stink free
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Where is the best place to stay in Key West for the first time?

First-timers should head to the Historic Seaport/ Downtown area OR the Old Town, both areas are just next to each other and offer travelers a good taste of what Key West has to offer.

What is the best place to stay near Duval Street in Key West?

Pier House Resort and Spa is the best place to stay near Duval Street. What’s even better is that after a night of partying, you can chill out at the spa or relax by the pool – the perfect hangover sure.

Where is the best place to stay for couples in Key West?

Hidden Beach Airbnb in Old Town is the perfect lovers’ getaway. With incredible views across the Caribbean and the perfect level of privacy, this is the ideal spot for a romantic retreat.

Don’t Forget Travel Insurance for Key West

Unfortunately, things can go wrong when you least expect it. This is why good travel insurance is essential before you head on your trip to Key West.

ALWAYS sort out your backpacker insurance before your trip. There’s plenty to choose from in that department, but a good place to start is Safety Wing.

They offer month-to-month payments, no lock-in contracts, and require absolutely no itineraries: that’s the exact kind of insurance long-term travellers and digital nomads need.

SafetyWing is cheap, easy, and admin-free: just sign up lickety-split so you can get back to it!

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Final Thoughts on Where To Stay in Key West

Sun, sea, and sand are only one half of the story when it comes to Key West. The city is also home to some great nightlife options, fascinating historic attractions, and epic adventure activities.

The neighborhood that really stands out to us is Duval Street. It’s home to the best nightlife in the city, and is also a major hub for the culinary and shopping scenes in Key West. Everywhere else mentioned in this guide is within walking distance, so it’s also super convenient for getting around.

That being said, the best place for you really depends on what you want to get out of your trip. Whether you’re looking for interesting historic attractions, peaceful beaches, things to do in Key West with kids, or a Florida road trip stopover, I hope this guide has helped you narrow down your options.

Did I miss anything? Let us know in the comments!

View down the beach at Smathers Beach Key West with sea is a bright turquoise shade of blue
Don’t miss a trip to Smathers Beach!
Looking for more info on travelling to Key West and USA?

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