HauntBound archive · catalog record
Reported phenomena, as catalogued
A four-story 1904 frontier railroad hotel in the Cascade Mountains, now a preserved but vacant landmark, famous for the legend of the 'Blue Lady,' a spirit said to walk the halls of its old gambling-and-saloon upper floor.
Railroad Avenue (US Route 2 corridor), Skykomish, WA 98288
Research updated September 2026
Age
All Ages
Cost
Free
No fee; the building is a preserved but currently vacant landmark, viewable from the exterior only.
Access
Limited Access
Small-town sidewalks and street frontage; the historic building interior is not open.
Equipment
Photos OK
Est. 1904 · Four-story 1904 frontier railroad hotel built after the 1904 Skykomish fire · Featured a gambling room, bar, restaurant, and chandeliers · Washington Trust for Historic Preservation Most Endangered Places (2010), later 'Saved' · Prominent surviving landmark of the Cascade railroad era
The Skykomish Hotel was built in 1904 in the small Cascade Mountain railroad town of Skykomish, Washington, in King County, in the wake of a fire that devastated the community that year. Constructed at a cost of roughly $10,000, the four-story frame building was an ambitious establishment for a frontier town, featuring chandeliers, a fireplace, a restaurant, and a combined gambling room and bar. In an era of railroad workers, miners, and frontier travelers, the hotel served as both lodging and a center of entertainment.
In its early decades the hotel reflected the rough character of a remote railroad town, with its upper floor associated in local memory with gambling, drinking, and, by tradition, a brothel and speakeasy. As Skykomish's fortunes declined with changes in the railroad industry, the hotel gradually fell into disuse.
The building stood neglected and largely vacant for many years. It was reclaimed by the Town of Skykomish and, in 2010, was named to the Washington Trust for Historic Preservation's Most Endangered Places list, later updated to a status of 'Saved.' Renovation efforts have been pursued, including work supported by a 4Culture grant, though the building has remained vacant and is not currently operating as a hotel or bed-and-breakfast.
Today the Skykomish Hotel survives as one of the most prominent historic structures in its tiny mountain town, a tangible reminder of the early-twentieth-century railroad era in the Cascades.
Sources
The Skykomish Hotel's most famous legend is that of the 'Blue Lady.' According to regional ghost lore, she was a woman who worked on the hotel's upper floor in the days when it operated as a saloon, gambling hall, and reputed brothel and speakeasy. The story holds that she was killed by a jealous boyfriend who flew into a rage upon finding her with a customer. No documented name is attached to the figure, and the account is told as folklore rather than as a verified historical murder.
The Blue Lady is most often associated with rooms three and four but is said to wander throughout the building. Visitors and former guests have reported that her presence is announced by the sudden smell of perfume. Local lore estimates that the old hotel may host as many as ten spirits, with the Blue Lady the most prominent among them.
The legend has become an embraced part of the building's identity: as part of preservation and renovation efforts, an artist installed an LED light projection casting an animated image of the Blue Lady in one of the hotel's windows, deliberately commemorating the town's most famous ghost story. The tale is documented across multiple regional sources and remains central to how the community remembers the hotel.
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