Best Historic Stays: Island Hotel on Cedar Key
Cedar Key has dealt with hurricanes, fires, and floods in recent years, yet the Island Hotel continues to stand strong on 2nd Street. Its 10-inch-thick walls and the resilient stewards who’ve cared for it over the years have a lot to do with that. Step inside and you’ll see how the past is still very much present.
The History of the Island Hotel
Long before it became the 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.
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.
The Island Hotel Today
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.
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. Guests can relax in the second-floor lobby and on the wraparound balcony 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.
Dining and Drinking at the Island Hotel
The Island Hotel’s dining and drinking scene is 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.
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 .
Things to do in Cedar Key
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.
Rent 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!
Take a Golf Cart Tour with Living Cedar Key. Ryan, who owns 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. Use the code SARAH10 to save 10% on all tours!
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.
For dining, check out The Prickly Palm for coffee and avocado toast. 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.
