The rooms at this brick hotel are named after women who once lived and worked there when it was a brothel called the Palace of Sweets. That fact alone could fill a dinner conversation.
But the building also carries tales of a ghostly Lady in Blue.
The structure dates to 1889. It was built by a sea captain and later served as a tavern and boarding house.
Ceilings soar 17 to 20 feet, so the grand staircases climb and climb.
I love that this Washington hotel never gutted its past for shiny upgrades. Antiques fill the halls.
Board games and books wait in the common salons.
One room even has a loft with a spiral staircase. Another is a budget room with a bathroom down the hall.
So which one would you dare to book first?
A Brick Landmark Steps From The Ferry
Three minutes on foot from the ferry terminal, the Palace Hotel Port Townsend rises in old brick above Water Street. It’s a Victorian building from 1889, and it overlooks Port Townsend Bay.
The hotel sits right in the downtown core of this seaside Washington town. Shops, cafes, galleries, and restaurants line the same street, so the car can mostly stay parked.
That parking, by the way, is free. A lot sits behind the building, which is a real perk in a busy historic district.
Anyone who has circled downtown blocks hunting a spot will appreciate that bonus.
Fort Worden State Park is about 2.2 miles away. That puts beaches, trails, and old military grounds within an easy drive for a family afternoon.
The hotel carries a 4.6-star rating across more than 500 Google reviews. That’s a strong showing for a building older than most of the town’s streetlights.
It also means plenty of travelers have climbed those stairs and still wanted to return.
Arriving by ferry from Whidbey Island? Book the sailing ahead of time.
Tides and weather can cancel some crossings, and nobody wants a ghost story to begin at the dock.
From Sea Captain To Palace Of Sweets
A sea captain built this place in 1889, back when Port Townsend dreamed of becoming a major port. The building didn’t stay quiet for long after that.
Over the years it worked as a tavern and a boarding house. It also spent time as a brothel known as the Palace of Sweets.
Yes, really, and the hotel doesn’t hide it.
Instead, the history became part of the decor. Guest rooms carry the names of women who once lived and worked inside these walls.
Each room has its own name and style, so no two stays feel identical.
Older kids who love history will find plenty to chew on here. Parents can decide how much of the backstory to share at bedtime.
Grandparents may enjoy filling in the bigger picture of frontier-era Washington.
The building shares space in the historic Tibbals building with a pizza restaurant called Hillbottom Pie. So the old structure still does double duty, just with tomato sauce instead of saloon business.
I like that the owners chose to honor the bones of the place. Original details stay put, and the result feels like a time capsule you can actually sleep in.
Who Is The Lady In Blue?
Local lore says one guest never really checked out. She’s called the Lady in Blue, and she ranks among Port Townsend’s best-known ghost stories.
The hotel is often described as one of the more haunted spots in town. Stories mention the Lady in Blue plus a few other long-term residents of the spectral kind.
Nobody can prove them, and that’s half the fun.
The building certainly sets the stage. Twisting halls, old lamps, art on the walls, and towering ceilings create a mood straight out of a storybook.
One traveler compared the climb to Hogwarts, which feels about right.
Spooky here leans playful rather than scary. Think friendly spirits of days past, not jump scares.
Families with curious kids can treat it like a gentle mystery to talk about over breakfast in town.
Is any of it true? That depends on who you ask and how loudly the radiator clicks at night.
Skeptics still get a gorgeous historic stay out of the deal.
Either way, few hotels in Washington offer a ghost story with your room key. That’s a souvenir that costs nothing extra.
Loft Rooms With A Spiral Staircase Surprise
Spiral staircases inside a hotel room are rare, and the loft rooms here have one. Room 33 on the third floor is a well-known example of this setup.
Thanks to ceilings that reach 17 to 20 feet, the lofts feel huge. Some have a comfortable king bed tucked upstairs.
Fans and a wall heater help manage that big airy space.
Kids tend to treat a spiral staircase like a ride. One family’s children even begged to change their whole vacation plan just to stay longer.
That’s quite an endorsement from tough critics.
Some lofts include a kitchen stocked well enough to cook a meal. A small table and chairs for two make simple dinners easy.
Families watching their budget will appreciate skipping a restaurant bill or two.
Just remember the obvious. A loft means more stairs on top of the main staircases.
Light packing helps, and the front desk staff will help carry luggage when asked.
If anyone in the group dislikes climbing, a standard room may be the smarter call. For everyone else, the loft turns a night away into a little adventure.
Budget Rooms, Bay View Suites, And Everything Between
Rooms here are priced one by one, which helps families match a room to their budget. That range runs from shared-bath standard rooms up to suites with private baths and bay views.
On the thrifty end sits the Best Value room, number 10B, on the top floor. Guests key into a bathroom down the hall.
It’s simple, but it still delivers the full Victorian experience.
Bigger groups can look at suites like the James Cook suite. It includes a kitchen, living area, bedroom, and bath.
That extra space matters when kids need room to sprawl.
Room 30 offers views of the bay plus a kitchen with a stove, oven, small fridge, and microwave. For a family, that setup can stretch a weekend budget nicely.
Every room comes with a minifridge, microwave, TV, and free Wi-Fi. Breakfast isn’t included, though plenty of morning spots sit within walking distance.
Rates shift by room and season, so check before booking. The good news is that one historic building offers options for couples, solo travelers, and families of several sizes.
Common Salons Made For Board Games And Hide-And-Seek
Board games and books fill the common salons, and that changes the whole vibe. A rainy Washington evening suddenly has a plan.
A relaxed mezzanine lounge overlooks the lobby below. Old brick, tall windows, and vintage details surround cozy corners for reading or a slow game of chess.
The expansive common areas practically invite exploring. One adult traveler said that as a kid, he’d have played hide-and-seek with his brother all trip.
Honestly, that sounds like the best use of a Victorian hallway.
Parents get a break here too. Kids can settle into a game while grownups finish a book nearby.
No screens required, and no extra cost either.
Grandparents might enjoy this part most of all. The lounges offer seating and atmosphere without any need to leave the building.
It’s an easy way to share a slower, old-fashioned evening together.
Do keep voices down later on. The hotel observes quiet hours from 10 p.m. to 8 a.m. in rooms and common areas.
That’s a fair trade for a building full of sleeping travelers and, possibly, a resident ghost.
Stairs, Fans, And Other Honest Heads-Ups
No elevator exists here. The grand staircases look stunning, but they climb a long way because of those sky-high ceilings.
Families with strollers, heavy suitcases, or limited mobility should plan ahead. The front desk staff will gladly help carry luggage up and down when guests ask.
Packing light makes a big difference.
Summer can bring warm rooms. South-facing rooms have air conditioning, and every room gets ceiling or box fans.
Extra fans wait at the front desk if needed.
The pizza restaurant shares the building, so rear rooms may catch the aroma. Asking for a room at the very front of the hotel helps avoid that.
Rooms facing the back lot may also hear early city garbage pickup.
Showerheads are old-style too. Very tall guests may find themselves ducking a little.
It’s part of living with a building from 1889.
None of this ruins the charm, but knowing it upfront avoids surprises. A quick call when booking can steer a family toward the right room.
Smart planning keeps the only spooky moments limited to the ghost stories.
Water Street Right Outside The Front Door
Step out the door at 1004 Water St, Port Townsend, WA 98368, and the town is right there. Shops, cafes, restaurants, and galleries line the street.
The waterfront sits close enough for an easy evening stroll. Families can wander, browse for souvenirs, and grab dinner without moving the car.
That’s a relief after a long drive.
A small cinema sits just around the corner. Catching a movie after dinner makes a simple, memorable night out.
Kids love a historic theater almost as much as a haunted hotel.
The Betta Bar and Grill across the street draws praise for its food and service. Breakfast spots also sit within walking distance, which matters since the hotel doesn’t serve a morning meal.
Front desk staff are known for sharing local tips. Ask them where to eat or what’s happening that night.
Their recommendations can turn a quick stop into a full day.
For grandparents, the flat downtown stretch keeps walking manageable. Everything feels close, and benches and storefronts give natural places to pause.
It’s the kind of downtown that rewards slow wandering.
Spotless Rooms And A Friendly Front Desk
Clean old buildings can be a gamble, yet this one keeps winning. Travelers frequently praise how spotless the rooms and trim stay.
One guest even walked the floors in white socks without a smudge. Lamps, books, and woodwork stay free of dust, which is impressive in a place packed with antiques.
The housekeeping team gets a lot of credit for that. In a building this detailed, keeping everything polished is no small task.
It shows respect for the history and the guests.
Front desk staff earn warm marks as well. They’re described as friendly, helpful, and even funny.
Some have helped guests with local recommendations, directions, and in one case mailing a forgotten hat.
Beds come with plenty of pillows, and many travelers describe sleeping soundly. A few note firmer mattresses, so preferences vary.
Fans offer helpful white noise for light sleepers.
For families, cleanliness ranks right near price on the worry list. Knowing the rooms stay tidy makes it easier to relax.
Then the only thing left to fret about is whether the Lady in Blue snores.
Worth Booking For A Night Of Old Washington Charm
Few overnight stays in Washington mix history, quirky rooms, and a ghost legend quite like this. The Palace Hotel Port Townsend pulls it off without feeling stuffy.
It suits families with kids who love exploring and spooky stories. It suits history buffs and couples chasing a little nostalgia.
Budget travelers can grab a shared-bath room and still soak up the atmosphere.
It’s less ideal for anyone who can’t manage stairs. Guests needing an elevator or full modern polish should weigh that carefully.
Honesty helps everyone pick the right trip.
Free parking, kitchens in some rooms, and walkable downtown dining help keep costs reasonable. Fort Worden State Park sits nearby for a free outdoor afternoon.
That combo makes a short getaway feel complete.
I can’t imagine a better place to tell a bedtime ghost story. The tall ceilings and creaky charm do half the work for you.
So pick a room, pack light, and bring a board game spirit. Whether or not the Lady in Blue says hello, the stories you leave with will last much longer than one night.
