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The Palace Hotel

1004 Water St
Port Townsend, WA 98368

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Details
  • Free Parking
  • Touching Not Allowed

This former brothel has been estimated to house as many as ten spirits, the most famous of which is the blue lady. Her portrait is featured at the top of the stairs. The blue lady inhabits rooms three and four, but she is also known to wander about the hotel. Guests are alerted to her presence by the smell of perfume. Guests that stay in rooms three and four reported that their beds shook at night and ghostly moans could be heard. At other times, guests of room three have encountered an apparition of a woman in a black dress. She stands near the kitchen stove but vanishes when anyone approaches her. The third floor is haunted by a friendly boy named Adam. He is often seen running through the hallways. Guests of the third floor have often encountered a more sinister presence, a shadowy figure that stalks people through the hallways. There have also been reports of a young Indian mother and her children who wander the entirety of the building. It is believed that the family died in a fire.

Nearby Real Haunts

Reviews

Definitely a haunt.

VERIFIED

I was working up the street at a Cafe and my kid's Mom was working cleaning rooms at the Palace. She went into room 4 to clean it one of her first days, opened the door and there was a lady in there. She apologized and said she'd come back. Went down to the front desk and said 4 isn't empty, the front desk manager said no it's not occupied was it a lady in a blue dress? Yeah. Oh she's not real, just pretend you don't see her, she'll go away. All nonchalant. She saw the Captain too.
Apparently they have or at least had (this was years ago) an employee retention problem because housekeepers refused to clean certain rooms. My kid's Mom didn't care once she knew the skinny. Just ghosts they won't hurt you. Although rooms 3 and 4 were known to be disheveled when guests checked in and the housekeeper had definitely cleaned the room before arrival, pain in the ass, usually just the bed...it was a brothel/tavern/billiard hall after all in its time.

September 2026

Would Recommend Yes
Freakin spooky wind

I was staying here about a year ago, I didn't know it was haunted at the time, but things just felt... very creepy. I was joking around how I thought it was a haunted based on the creepy atmosphere and old look, but something beyond that gave me the ick. I was scared to be alone in a room there, and I wasn't sure why. Then, night came. Along with the most horrible screeching wind I've ever heard. The wind whipped through the trees, almost sounding like screams. It made the whole building creak and groan. It sounded like we had angered some sort of spirit, as the wind was so shrill it almost sounded alive.

February 2025

Would Recommend Unsure
Stayed in room 1…

My wife and I came back late from the bar, heard children playing in the hallway on the second floor (approx. 12 midnight). We walked around for a bit trying to find the kids, but they were nowhere to be found… The next morning my wife was woken up twice to a voice saying “hello”. Nothing visual, but a very cool experience nonetheless.

November 2024

Would Recommend Yes
Yes It Has Spirits!

We stayed two nights on the third floor in room 9 Miss Lily's room. First night while sleeping I smelled the faint aroma of perume, cigars, and a yukky smell. Later right next to me I hard loudly the sound of fingernails on the sheets making a circling pattern. Right after I FELT some fingernails on my back go up and down a few times. Not hard but it startled me! I yelled "Stop it! Get out of here!" Then my husband stirred and I told him I didnt want to talk about it and I didnt like it there. Next morning he said he saw the hallway light turn on and off twice and we both saw small lights on the ceiling. Next eveing we switched sides and there was no activity. There were people staying next door to us the second night so maybe she went to visit them that eveing.....

September 2023

Would Recommend Yes
Very haunted. Love that place.

Captured orbs and rem pod went off 3 times. Love that place!! Ghost town paranormal.

July 2017

Would Recommend Yes

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Last Edit to Your Listing: Jun 16, 2016

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