Overnight Stay Booking Required
Overnight Stay
Book a Victorian-era guest room; Room 4 (formerly Room 3) is associated with the Lady in Blue, and a guest journal records reported experiences.
- Duration:
- 12 hr
Photo coming soon
Haunted Hotel / Inn
The Palace Hotel
An 1889 Victorian boutique hotel in Port Townsend's Capt. Henry L. Tibbals Building, famed for its Prohibition-era brothel past and roughly ten resident spirits including the Lady in Blue.
1004 Water St, Port Townsend, WA 98368
Age
All Ages
Cost
$$
Standard hotel rates; ghost-curious guests may request Room 4 (Miss Claire's room).
Access
Limited Access
Historic three-story building with stairs to upper floors; limited accessibility typical of 1889 construction.
Equipment
Photos OK
Est. 1889 · Contributing property to the Port Townsend Historic District (National Historic Landmark, 1977) · Built by retired sea captain Henry L. Tibbals at the height of the 1889 Victorian boom · Operated 1925-1933 as the 'Palace of Sweets' hotel and brothel
The Palace Hotel occupies the Capt. Henry L. Tibbals Building at 1004 Water Street, a three-story Victorian commercial block erected in 1889 by retired sea captain Henry L. Tibbals during the speculative real estate boom that briefly dubbed Port Townsend 'The Inevitable New York.' The expected transcontinental rail link never reached the city, and the boom collapsed, leaving the Tibbals Building and many other 1880s commercial blocks in search of new uses.
From 1925 through 1933 the upper floors operated as the 'Palace of Sweets,' a hotel that doubled as a brothel during Prohibition. The arrangement was characteristic of Port Townsend's waterfront economy: a Victorian seaport on the Strait of Juan de Fuca whose deep-water access made it both an early customs port and a destination for sailors, loggers, and itinerant workers.
The Palace Hotel today markets itself as a Victorian boutique hotel with restored period rooms. The building is contributing to the Port Townsend Historic District, which was listed on the National Register of Historic Places in 1976 and designated a National Historic Landmark in 1977 — one of only three Victorian seaports so designated in the United States.
The property maintains a long-running 'ghost files' scrapbook documenting guest experiences, and a portrait of Miss Claire — the Lady in Blue — hangs near a guestbook used by visitors to record reported encounters.
Sources
- https://www.peninsuladailynews.com/news/spirits-call-port-townsend-home-all-year-round/
- https://seattlerefined.com/travel/a-haunting-history-at-the-palace-hotel
- https://www.peninsuladailynews.com/news/is-the-palace-hotel-haunted-make-no-bones-about-it/
- https://palacehotelpt.com/
Apparition described as a woman in a blue dressScent of perfume in Room 4Apparition described as a Lady in Red near Room 5Doors reported to open without occupantsReported moans and shaking beds in some rooms
According to the Peninsula Daily News and Seattle Refined, the most prominent reported presence at the Palace Hotel is 'Miss Claire,' also called the Lady in Blue. Local lore describes her as a young woman engaged to a sailor who never returned, her unworn wedding gown reportedly found in a trunk in what is now Room 4 (originally Room 3). Guests describe an old-fashioned blue dress and the lingering scent of perfume.
The hotel is said to host approximately ten spirits in total. Lore named in the Peninsula Daily News and Port Townsend Leader includes a Lady in Red, 'Miss Genevieve,' associated with Room 5 and said to have been one of the building's former 'ladies of the night,' as well as the figure of founder Henry L. Tibbals himself, reported walking the halls. The Peninsula Daily News reports that doors in certain rooms have been observed to open without occupants, and guests have reported moans and shaking beds.
The hotel keeps a 'ghost files' scrapbook of reported encounters and a guestbook positioned near a portrait of the Lady in Blue, where visitors record their own experiences. None of these reports constitute scientific evidence; they form an oral and journalistic tradition reaching back to the 1960s, when the hotel began to take public note of guest stories.
Notable Entities
Miss Claire (Lady in Blue)Miss Genevieve (Lady in Red)Captain Henry L. Tibbals
Plan Your Visit
1 way to experienceSources & Further Reading
Every HauntBound history is researched from documented sources. We clearly separate verified historical fact from paranormal folklore.
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Frequently Asked Questions
Is The Palace Hotel family-friendly?
A working hotel with restored Victorian rooms; the building's brothel history and ghost lore may not be age-appropriate to discuss with younger children. Overall family fit: Moderate.
How much does it cost to visit The Palace Hotel?
Standard hotel rates; ghost-curious guests may request Room 4 (Miss Claire's room).
Do I need to book in advance?
Yes, reservations are required.
Is The Palace Hotel wheelchair accessible?
The Palace Hotel has limited wheelchair accessibility. Terrain: Historic three-story building with stairs to upper floors; limited accessibility typical of 1889 construction..