The wife and I went to Key West for our honeymoon and stayed at the Southernmost. Great location on the southern end of Duval St. It's a pretty good walk to the other side of the island, but who wants to drive down Duval anyway? The hotel was a few blocks from most of the action and noise — close enough to walk there in a couple minutes, but plenty far enough to be away from the noise and crowds. And it's also one of the cheaper hotels on the island. Great value for the money.
My only complaint is, when we were there the hot tub wasn't working. But that was a fairly minor inconvenience. The free parking more than made up for it.