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 facade. The Captain Tibbals Building is a beautiful example of Port Townsend's turn-of-the-century architectural past.