The Palace Hotel is a stone-and-brick landmark on Water Street, built in 1889 during Port Townsend's Victorian boom, and its position puts you in the middle of the historic downtown. The building began life with a lively reputation, and its early history as a house of entertainment is part of the story told to guests. Over the decades it has served a number of uses before being restored as a hotel. Rooms retain the character of the era, with high ceilings, large windows and furnishings that nod to the Victorian period, and the location means you can step out of the door and be among the town's bookshops, galleries and cafes.
Room types range from small, simple doubles to larger suites with kitchenettes or sitting areas, and many are named for figures from the building's past. Some face the harbor and offer views of boats, the marina and the water beyond. The hotel is old, so rooms vary in layout and you should expect period quirks such as stairs, creaking floors and some street noise on busy nights. Ask for a quiet room if sleep is a priority.
Water Street is a lively place, with restaurants, pubs and shops that stay open into the evening, especially in summer. The Northwest Maritime Center, ferry dock, farmers market and the upper town are all within a short walk. Fort Worden, the marine science center and the Point Wilson Lighthouse are a short drive. You can easily spend a weekend here without needing a car for much of the time.
Because of its age, the building may have limited accessibility and may not have elevators in every section, so check with the hotel if you have mobility needs. Parking is typically on the street or in nearby lots, so ask about arrangements when you book. Breakfast policies and amenities vary, and it is worth checking the current offering before you decide.
The Palace is a good choice for visitors who prioritise character and location over modern amenities. It is particularly appealing for couples, history fans and anyone attending festivals in town, such as the Wooden Boat Festival in September. Reservations fill quickly on event weekends, and winter rates are generally lower. Combine it with a day at Fort Worden and a ferry ride to Whidbey Island for a full Port Townsend trip.
The best way to enjoy the hotel is to treat it as a base for a walking weekend: coffee at a Water Street cafe, a morning in the bookshops, a harbor lunch and a stroll along the docks at sunset, all without ever touching the car keys.
Why stay here
- ✓1889 Water Street landmark
- ✓Walkable to harbor and shops
- ✓Period rooms and high ceilings
- ✓Harbor views in some rooms
- ✓Restaurants and pubs outside the door
- ✓Near the Maritime Center
- ✓Short drive to Fort Worden
- ✓Festival weekend location
Good questions
Is the hotel on the waterfront?+
It is on Water Street in the historic downtown, a short distance from the harbor and marina.
Will I hear street noise?+
Possibly, especially on busy summer nights. Ask for a quieter room if that matters.
Does it have parking?+
Check current arrangements. Street and nearby lot parking is common in downtown Port Townsend.
