The Palace Hotel is in a beautiful old building (the Captain Tibbals building I think) which was built at the end of the 19th century. The hotel really gives a great feel for the history of the building and the area while still providing most modern comforts. We stayed in the Miss Rose room for New Year's Eve and enjoyed the room's ample space for two people and the long claw foot tub. The very high ceilings definitely evoke a different time, as do the stairs up to the third floor. Due to the age and historical importance of the building there is no elevator. Also no A/C but we didn't miss that in late December. The staff universally were friendly, helpful and courteous; a smile goes a long way in Port Townsend. Parking in back was easy; we didn't notice and didn't ask about luggage carts. Kind of a moot point due to all of the stairs. The hotel is located right on Water Street in downtown with easy walking access to wonderful shops, eateries and ice cream. In room coffee is adequate and two great coffee shops are across the street. I highly recommend the Palace for a winter visit based on its historical charm and unique feel, the hotel's location and its staff. Plus I got in a solid quad workout.