My wife and I were at the Merlin Guest House for Christmas 2012.
It's a real nice place to stay, 1 block from Duval Street. We had room #20, which is on the 2nd floor. It is the only unit on the 2nd floor,very private with a great lanai. If you don't mind steps, it is a great choice.
Breakfast was a typical continental style, served in the outdoor garden by the pool.

Just returned home from a five night stay. We loved the charm of the Merlin Guesthouse. Our room was spacious and private. Loved all the natural light! The staff was exceptionally friendly and we felt right at home. I'd stay again and would choose the same room! Great place!

My then fiance, now husband, stayed here 4 nights this week for our wedding & honeymoon. It was wonderful! The room was super clean as were the grounds! Staff was very helpful & friendly. Our bed was super comfy. All around wonderful stay!!! I loved the hammock!

we arrived after 9pm with no reservation. the man at the front desk gave us a discounted price.
parking is close... was hard to find because of the one way streets. but u can see the area.

we like the hotel alot and stayed 3 nights. charming small rooms. old rustic floors. cute place.
there is even a cat at the hotel... who will hang aroung and be your friend until more guests arrive

the pool is nice, the staff goes home around 10pm. your not supposed to use the pool... but if you are quiet nobody will notice. after walking in the heat of duval street its very nice to swim.

the sunlight comes in the room in the morning. which is kindof a nice wakeup.

in the morning they were doing some repairs on the roof of our room... but after a dirty look from my girlfriend they stopped. everyone was just really nice and polite. great locals here.
met another couple at the hotel. everyone in the keys is in a great mood and happy to be there!
oh, and alot of people in key west have been drinking... alot.... in the sun..... forever