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Palace Hotel Review: This 1889 Victorian Richardson Romanesque-style building sits in the heart of downtown Port Townsend. Its claim to fame is its original role as a brothel. Although it has cleaned up its act since its risqué beginnings, the past is fondly commemorated with rooms named after the girls who once plied their trade here. Adding to the legendary atmosphere is the rumor that one of the rooms is haunted. Many of this hotel's 17 spacious rooms feature exposed brick walls, 14-foot high ceilings and large windows that stretch almost from the floor to the ceiling. Many feature views that range from downtown and the water to Mt. Rainier. All rooms are individually decorated with period antiques, and four of the units share baths. The hotel's largest suite, Miss Isabelle, boasts a loft-style bedroom, sitting area, kitchen and dining room. Keep in mind that there are no elevators, and the staircase is steep.