If you stay on the Atlantic side you have to cross the street to also get to the beach also the north end of the Gulf is the same way. I will ask them what they suggest. So far so good - no oil there yet. There is one really nice hotel on the Atlantic side that is on the beach. I think it is the Casa Marina. I will ask them to be sure.
There is a lot of history about the island, be sure to take the Conch train to learn about it -
Key West Conch Tour Train & Key West Attractions | Florida Keys Sightseeing Train Tours Hemingways home is there too. Lots of 6 toe cats.
Be sure to go to the Dry Tortuga too (fort). You have to take a boat to it.
Dry Tortugas National Park (U.S. National Park Service) And Mel Fisher's Treausre Museum
Mel Fisher's Treasures My daughter just got back form her visit (visiting her grandparents) and she really liked the Museum! And there is a place there that make the best sandles - they last forever! Kinos -
Sandals of Kino Sandals Key West
Don't forget the pier at sunset!! Great artists perform. Pier is on the Gulf side.
Are you driving down?? Long way. Be sure to stop mid way for a break.
Okay - will get back to after I ask my parents about the hotel. I hope the above information has helped.