Known as Washington’s Victorian Seaport, Port Townsend is a charming gem of a town located on the edge of the Olympic Peninsula. Not only is it consistently ranked one of America’s most beautiful cities, but it boasts two National Historic Landmark Districts. Port Townsend is a mecca for artists, writers, couples, and history buffs… and if you’re into the paranormal, you’ll definitely want to stay at the Palace Hotel.

The Palace Hotel is located on Water Street in downtown Port Townsend.

The Palace Hotel / Facebook The hotel sits inside the Captain Tibbals Building, which was constructed in 1889 by a retired sea captain named Henry L. Tibbals.

The ambiance here is warm, welcoming, and comfortable.

The Palace Hotel / Facebook Even if you’re not a guest of the hotel, the staff will typically let you come in and take a look around.

But as pleasant as the Palace is now, unfortunately, that was not always the case.

dansonman22 / TripAdvisor The building has served as a theater, a grocery store, a state liquor store, a florist shop, and several restaurants over the years… but the most interesting part of its past is its history as a brothel.

From 1925 to 1933, the upper two floors of the building were known as the Palace Hotel, otherwise known as the Palace of Sweets.

James C / TripAdvisor This was a well-known brothel in town, and in fact, many of the hotel rooms are still named after the ladies who lived there.

Marie, the Madame of the house, occupied a corner suite on the second floor – and some say she never left.

Aga1963 / TripAdvisor And Marie is far from the only spirit thought to be in this building. From the infamous Lady in Blue to the former sea captain Tibbals himself, guests and hotel staff have reported seeing up to 10 different ghosts here.

We don’t know much about the hotel’s time as a brothel, but we know some sinister things occurred here.

dansonman22 / TripAdvisor At least one woman jumped to her death here, and a man hanged himself in one of the rooms. One of the spirits is said to be the ghost of a monk who is still pining for one of the long dead ladies of the night.

In spite of all the ghost stories, anyone who has stayed at the Palace Hotel will tell you it’s a wonderful place.

The Palace Hotel / Facebook The spirits may reveal themselves, but they are always playful and mean guests no harm. There’s even a “ghost book” in the lobby for guests to write down any paranormal activity they experience.

Would you stay in a haunted hotel? Learn more about the Palace here.

The Palace Hotel / Facebook

The hotel sits inside the Captain Tibbals Building, which was constructed in 1889 by a retired sea captain named Henry L. Tibbals.

Even if you’re not a guest of the hotel, the staff will typically let you come in and take a look around.

dansonman22 / TripAdvisor

The building has served as a theater, a grocery store, a state liquor store, a florist shop, and several restaurants over the years… but the most interesting part of its past is its history as a brothel.

James C / TripAdvisor

This was a well-known brothel in town, and in fact, many of the hotel rooms are still named after the ladies who lived there.

Aga1963 / TripAdvisor

And Marie is far from the only spirit thought to be in this building. From the infamous Lady in Blue to the former sea captain Tibbals himself, guests and hotel staff have reported seeing up to 10 different ghosts here.

At least one woman jumped to her death here, and a man hanged himself in one of the rooms. One of the spirits is said to be the ghost of a monk who is still pining for one of the long dead ladies of the night.

The spirits may reveal themselves, but they are always playful and mean guests no harm. There’s even a “ghost book” in the lobby for guests to write down any paranormal activity they experience.

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Address: Palace Hotel Port Townsend, 1004 Water St, Port Townsend, WA 98368, USA