Port Townsend ยท Downtown

Palace Hotel

The 1889 Captain Tibbals Building, a three-story brick block on Water Street from Port Townsend's railroad boom, now 26 rooms and suites.

Palace Hotel
Joe Mabel / CC BY-SA 3.0
Built
1889Built 1889 as a three-story hotel building (the Captain Tibbals Building/Tibbals Block).
Style
Victorian commercial
Type
Boutique hotel
Rooms
26
Area
Downtown
Credentials
Inside a National Register historic district; National Historic Landmark

The story

The three-story brick building on Water Street went up in 1889, during Port Townsend’s railroad boom, as the Captain Tibbals Building. The district nomination lists the Tibbals Block among the brick blocks built in that burst of construction. Today it is the Palace Hotel, with 26 rooms and suites in the heart of the downtown historic district.

The ghost story

The Peninsula Daily News has called the Palace possibly the most haunted place on the North Olympic Peninsula; the stories center on the 'Lady in Blue,' whose portrait hangs at the top of the stairs and whose legend ties her to the brothel in the building from 1925 to 1933, and guests report shaking beds, moans and shadows in Rooms 3 and 4.

Source: www.peninsuladailynews.com

More haunted historic hotels →

Good to know

  • Address: 1004 Water Street, Port Townsend, WA 98368
Sources (2)

Last verified October 2026. Details change; confirm with the inn before you book.