I highly recommend the Key West Marriott Beachside Hotel.
When you arrive you are greated with a champagne welcome. The rooms are classy and sophisticated with an excellent staff serving the property. This hotel also offers free shuttle service to and from Duval Street. When the shuttle broke, the hotel called taxi cabs and paid the fees for the guests.
Make sure you take the Key West jet ski tour offered at the hotel. It is amazing! It is a 27 mile tour of the area highlighting the wildlife and history of Key West.
I also used Marriott Reward points for the stay, was upgraded to a suite and my family and I were treated like royalty.
bigdog left off one important detail. The property appears to have been built as a timeshare and the rooms are either a one or two bedroom suite with full kitchen, or an efficiency. Here are some pics from my trip there.
This is one great property in the Marriott system. The only bad part about my stay there (true story) was while lounging by the pool a European woman had taken off her top and security came by and kindly asked her to cover up.
Thanks for the response..
Actually did not know it was a timeshare (It does not really advertise as so). We were upgraded to a presidential suite + they have a nice restaurant and breakfast buffet daily.
Too bad about the topless woman covering up. I thought "everything goes" in the Conch Republic. Living in Germany for three years this never bothered me. Hope she was good looking though.