We stayed at The Grand for three nights in June of this year (2007) and found a little slice of "old" Key West, not the new corporate mania that has taken over everything genuine and unique about Key West.
The rooms here were incredibly clean, quiet, and well equipped with everything we needed(TV, a/c, phone, small refrigerator, and private bath). The price was well below what other places we checked could offer. Local artwork on the walls, great continental breakfast and free parking just added to the whole experience. The staff were amazing. Every recommendation was perfect...dinner, tours, bike rentals, snorkeling. They knew all the right places.
Do yourself a favor...stay here! Don't be suckered into one of the new "cookie cutter" corporate places with no personality, when this place has it all.