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.
- 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
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.