Best Historic Stays: Island Hotel on Cedar Key
Cedar Key has been on my list for years — a charming Old Florida town I always meant to visit but never quite got around to. After recent hurricanes, flooding, and even a fire in 2024, I wasn’t sure what I’d find.
But I came away with even more than I expected… and a massive amount of respect for the people who continue to rebuild and shape this resilient, quirky island community. At the center of it all is the Island Hotel, a historic stay full of heart, history, and charm, and one I know I’ll keep coming back to.
Built to Last: The Making of a Local Landmark
Long before it became the quiet coastal getaway it is today, Cedar Key was an important Gulf Coast hub for shipping and trade. By the mid-1800s, the area was known for its timber resources — including cedar, cypress, and pine, which were used for everything from pencils to building materials. The steady flow of goods and ships helped shape the town’s early economy and identity.
As business boomed, development quickly followed, including the construction of the building that would eventually become the Island Hotel & Restaurant.
Built between 1859 and 1860, the structure originally operated as a general store. It sold everything from furniture and dry goods to fuel oil and produce. The 10-inch-thick walls, made from a mix of oyster shell, limestone, and sand, have truly stood the test of time.
In 1915, it was acquired and eventually converted into a hotel. Through the years and over the course of multiple owners, the hotel endured financial hardships, fires, and changing times, but its real turning point came in the 1940s when Bessie and Loyal “Gibby” Gibbs arrived. They gave the building a top-to-bottom refresh, hired an artist to paint murals on the second floor and the now-famous King Neptune painting in the bar, and gave the property its name: the Island Hotel.
Since then, the hotel has changed hands several times, with each new owner adding their own thoughtful twist, while staying true to the building’s historic character and charm.
In 1984, the Island Hotel was added to the National Register of Historic Places, and in 2002, it was recognized as a Florida Heritage Site. Today, it’s more than just a place to stay, it’s a Cedar Key icon.
Inside the Island Hotel
The lobby is your first step into the past. With dark green walls, brown leather furniture, and historic photos and news clippings. There are nods to Bessie, tributes to Cedar Key’s past, and even a stuffed manatee behind a piano, a quirky touch that somehow fits perfectly.
The Island Hotel has just 10 guest rooms, and each one is totally unique. There are no TVs or phones, and every room still has the original wooden walls and floors. Rooms are centrally heated and cooled, and guests are invited to make use of the second-floor lobby and wraparound balcony, complete with rocking chairs that overlook 2nd Street.
I stayed in Room 35, which just so happens to be a favorite of Jimmy Buffett, and it’s easy to see why. The walls are painted a soft pistachio green with pastel accents, and there’s a charming little vanity, wonderfully creaky wood floors, and windows that have views of the wraparound balcony. The bathroom was surprisingly spacious for a historic property, which felt like a rare treat. It’s cozy, character-filled, and full of the kind of charm that makes you dream of a return trip before you even leave.
Dining and Drinking at the Island Hotel
The Island Hotel’s dining and drinking scene feels just as timeless as the rest of the property. When you step into the lobby, the restaurant is located just to the left. It’s a casually elegant dining room with a warm, Old Florida feel. There’s also a screened porch, perfect for enjoying your meal with a breeze when the weather is cooler.
One standout dish is Bessie’s famous Heart of Palm Salad, a staple here for decades. I wasn’t quite sure what to expect, but it totally surprised me. The presentation was beautiful, with seasonal fruit, sugared dates, and a house-made dressing over crisp hearts of palm. It’s refreshing, full of flavor, and a perfect nod to the hotel’s history.
Just off the right side of the lobby, tucked in the back, is Neptune Lounge & Bar, a cozy two-room bar that’s easy to fall in love with. In the room connected to the bar, there are checkered tablecloths, old photos on the walls, soft lighting, and live music .
It’s the kind of place where time slows down. You can sip an espresso martini (highly recommend), strike up a chat with someone new, or just soak in the old-school atmosphere.
Walkable, Wonderful, and Full of Surprises
One of the best parts of visiting Cedar Key is that You can park your car and forget about it. Everything is within walking distance…the beach, the shops, the galleries, and more!
And while the town still bears signs of recent storms, its resilience and warmth are unmistakable. Here are some of my favorite experiences from the trip:
🌅 Get on the Water
I rented a kayak from Cedar Key Adventures for a paddle out to Atsena Otie Key, a small island rich in history. You can hike to a historic cemetery through a forest. It’s haunting and beautiful all at once. Be sure to bring bug spray!
On the way back, I was lucky enough to spot a pod of dolphins, part of three generations that live in these waters. I also caught a glimpse of a loggerhead sea turtle and some truly incredible birdlife: roseate spoonbills, white ibis, herons, and egrets. Cedar Key is a birdwatcher’s paradise!
🛺 Take a Golf Cart Tour
A definite highlight was a two-hour golf cart tour with Living Cedar Key. Ryan, who runs the company, is a fantastic storyteller and a true local expert. We cruised past some of the most historic homes on the island, visited places I’d never have found on my own, and ended with a stop at the Cedar Key Cemetery, which turned out to be one of the most memorable parts of the day.
🛍 Shop & Stroll
Many local shops are still open and full of charm. I grabbed a soft long-sleeve shirt from the Dilly Dally Gally, and wandered into several small galleries showcasing local art, like the Cedar Keyhole Artists Co-op Gallery.
And if you're looking for a cool, sweet treat and a great sandwich, head to 1842 Daily Grind & Mercantile — home of the frozen chocolate-covered Key lime pie. It’s exactly as good as it sounds.
