The Palace Hotel

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The Palace Hotel was formerly a brothel that closed down during the war, when it was refurbished and opened as a historic hotel. The Palace Hotel is believed to be haunted by at least ten spirits, including the former sea captain who constructed the hotel. The most well known apparition seen in the hotel is the ghost of a lady in an old-fashioned blue dress. She mostly appears in Room #3 and #4, and her presence is often accompanied by the aroma of perfume. The doors of these rooms often fly open at night when there is no one around, and people staying in these rooms have reported hearing moans and having their beds shake violently. A happy presence is felt on the lower floor of the hotel, and is believed to be that of Captain Tibbals, the former owner and builder of the hotel. In Room #3, people have reported seeing an old woman in a black dress standing near the stove in the kitchen of the room, but when they approach her, she vanishes. The ghost of friendly little boy, known to staff as Adam, has been seen running around on the third floor of the hotel before fading away, along with a menacing shadowy apparition that has been known to follow guests throughout the third floor corridor. In the hotel basement, the apparition of a homeless man wearing a plaid shirt has been seen by staff. The former owners of the hotel had given him a residence in the hotel, and after he passed away, he returned to the hotel and has haunted the building ever since. The apparition of an Indian woman and her ghostly children haunt various levels of the building, where they apparently died in a fire. Various other misty apparitions and paranormal activity have been reported in the historic hotel.

(Submitted by Callum Swift)

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Geographic Information

1004 Water St
Port Townsend, WA 98368
United States

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48.11411529999999, -122.75787919999999
Jefferson County, Washington
Nearest Towns:
Port Townsend, WA (0.2 mi.)
Marrowstone, WA (5.3 mi.)
Port Hadlock-Irondale, WA (5.8 mi.)
Coupeville, WA (8.0 mi.)
Camano, WA (11.4 mi.)
Freeland, WA (12.9 mi.)
Blyn, WA (13.1 mi.)
Oak Harbor, WA (13.4 mi.)
Port Ludlow, WA (13.5 mi.)
Jamestown, WA (15.2 mi.)

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Comments (4)

  1. My wife/girlfriend stayed at the Palace a couple years ago. the receptionist said we were to sleep in Lucy’s room. Awesome room and great atmosphere. We went out for dinner and drinks and came back to the room for some after hours fun. It was the best sex night ever for both of us.. I felt like there was a female presence cheering me on lol… very exhilarating. Yes we will be going back !!!!

  2. Stayed in 7b miss Sara’s room last night. Caught an awesome orb(so far, still need to go through video) At 4:34am was awoken by my Rem Pod going off!! It first went off twice then I said thank you and it went off again!! By far the best paranormal event I have witnessed yet. 🙂 Will definitely go back there! Brian H.

  3. We stayed one night in Miss Claire’s room (#4) the first night. The next night we stayed in Miss Sara’s room (#7b). Around 2:30 I was awoken from a terribly cold breeze that took my breathe away for a second. I went to call out to my boyfriend but I couldn’t speak. During the time I was trying to talk I also saw a light reflected on the wall of a hurricane table lamp.

  4. Well I was very impressed with the haunted action we experienced here. I forgot to log it in but it was the summer of 2021. I said well guess the rumors are not true this place is not haunted. Then I went to bed, my lamp on the night stand kept turning off and on. Then my SO went to close the door. The door kept swaying back at him. He tried to close it five times before giving up. Then we heard noises in the kitchen. Needless to say it was a haunting night at the palace inn. I am sure the ghost wanted me to be well aware of them. I will never doubt the ghostly presence here again. I am currently here again. We will see how it goes tonight.

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Disclaimer: The stories posted here are user-submitted and are, in the nature of "ghost stories," largely unverifiable. makes no claims that any of the statements posted here are factually accurate. The vast majority of information provided on this web site is anecdotal, and as such, should be viewed in the same light as local folklore and urban legends.