Key west has any accommodation you'd want from a Motel 6 level on up.
I suggest you go on-line and check out your options and price ranges. We've stayed in two bedroom rentals at Duval Square, at the Truman Annex and individual weekly rentals; but have not gone the high end hotel route. You can probably get an individual room or suite by the night with Continental Breakfast and salt water pool at the Light House Inn and Suites on Whitehead Street opposite the Ernest Hemingway House.
If you are there for a week I'd suggest renting motor scooters to get around;and be sure to try the snorkeling at the beach in Zachery Taylor state park (bring your own gear). Visit the aquarium, Hemingway's house and Mallory square for the sunsets. Dozens of excellent restaurants... too many to name, but try Blue Heaven on Petronia Street, B.O's Fish wagon across from West Marine; Alonzo's, and Turtle Krawls at the waterfroont for local flavor. Check out Pelican Poop for gifts and see their interior garden where Hemingway had an apartment in his early days. Sloppy Joe's, Captain Tony's and Margueritaville are amongst the usual tourist bars. Any number of shops and art gallery's on Duval street...plus people watching everywhere.
