We recently stayed at the Parrot Key hotel for 3 nights in a 2 bedroom cottage. The accommodations were spacious, comfortable, and very clean.... perfect for 2 couples traveling together. The pool area (4 pools actually) was lovely, and the grounds were beautiful. There is no "beach"...just a pier jutting into the water...and a sandy area in front of the cottages...but the sunset view is still wonderful!
This hotel would be 5 star if it was located closer to town...you definitely need a car or taxi to get to the Duvall st. or Mallory Sq. area. There is very little parking to be had in town...and it is pricey. Be aware also that the entire property is non smoking...this was not made clear to us and we had a smoker in the group who had to hike to the edge of the property to the "designated" smoking area.