PIHA Investigates the Historic Palace Hotel
1004 Water Street
Port Townsend, WA 98368
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History of Paranormal Activity:"The Ghost Files," is a scrapbook of photos and letters about first-person paranormal run-ins that have taken place inside the hotel. The hotel has been keeping The Ghost Files book since 1987. The book has more than 100 different cases left by guest.
Atop the staircase is a large portrait of the Lady in Blue, a mournful, mysterious woman from decades ago whose legend paints her as having ties to a former brothel that operated at the hotel from 1925 to 1933.
The name, Miss Claire, appears on the door of Room 4 upstairs, which has been said to be haunted. Miss Claire and the Lady in Blue could be one and the same, as the story goes. The spirit of the Lady in Blue is believed to leave the portrait to walk the Palace halls in search of a lost lover. She supposedly likes to haunt the second floor, especially Rooms 3 and 4.
Visitors have recorded shaking beds, eerie moans and strange shadows in those two rooms.
Several guests claim to have had conversations with the Lady in Blue. Other hotel guests recall dreaming about the Lady in Blue, awakening to strange noises in the night, hearing a cry or a groan, smelling perfume or feeling a cold draft from the hall and knocking on the door but when answered, no one is there.
There is possibly another spirit named Betty who died at the age of 39.
Susan Euro, whose husband owns The Wine Seller next to the Palace Hotel, saw a ghost in the basement, which serves the Palace Hotel. She was putting away boxes of decorations after Christmas, and was taking the fourth and last box down. When she got in the door,she saw the back of a man sitting at a workbench that is down there. She said he was bald and had on a blue shirt. She thought it was odd, as she had just been down and seen no one. A priest named Father Patrick is believed to be in the basement according to guest psychic Robin.
Woman in blue dress is often seen at top of stairs on the 2nd floor level. Boy has been seen on the 3rd level. The shadow of a person has ben seen on the 3rd level.
Rooms #3 and #4 have had reports of paranormal activity.
As she walked from the door to the work area, she realized the man was no longer there, but there was a chair in the passageway where she had walked before. She said she was never frightened, even after she walked to her storage area and coming back, realized she must have seen a ghost.
Guest psychic Robin felt an Indian woman named and some children. There was also a mention of a fire.
About the Palace Hotel:
This beautifully restored Victorian hotel is in the heart of the historic community of Port Townsend, WA. A former brothel with most rooms named after former working girls including the Madame Maries suite #4 and Miss Kittys room, room #3. Each room is uniquely decorated in a Victorian theme and furnished with antiques and collectibles.
The Palace Hotel occupies the Captain Tibbals Building. This classic three-story brick building was constructed in 1889 for $28,000 by Henry L. Tibbals, a retired sea captain. Built in the Richardson Romanesque style, the building's arched windows appear to extend for two stories through the use of twin columns that bracket each window bay on the building's façade.
The first floor of the Captain Tibbals Building originally housed a billiard parlor and saloon known as the Townsend Tavern, while the upper two floors provided furnished rooms for rent. In the early 1900s, The Call newspaper operated out of the building. Over the years, the building has housed an Egyptian theater, the Northern Pacific offices, a grocery store, a state liquor store, a florist shop, and several restaurants.
From 1925 to 1933, the upper two floors of the building were known as the Palace Hotel, affectionately nicknamed "the Palace of Sweets" as they were operated as a brothel and hotel. During this time, the Madame of the house, Marie, occupied the corner suite on the second floor. Her room was richly decorated with plush red wallpaper and deep green woodwork, much as it is today. It had the only fireplace in the building, but it lacked a private bath as there was only one on each of the upper floors. On the third floor there were four, small interior rooms which were lighted from the large stairwell skylight, but had no outside windows. While this type of interior room was quiet common in the building of this era, in the Palace Hotel they served as "cribs" for the "girls".
Following an early morning raid by the sheriff in the mid ~1930's, the brothel was eventually closed and Marie and the "girls" soon left town. Such is the colorful past of this beautiful building.
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