Enjoy daily all-you-can-eat pancake breakfasts at the uniquely placed Olympic Port Townsend AYH Hostel (360/385-0655, www.hiayh.org , $17 dorm beds, $45 couples’ rooms), located in a former barracks building at Fort Worden. Reservations are strongly advised in summer months, especially for the couples’ rooms. The hostel is open year-round, but guests must be out 9:30 a.m.–5 p.m.
For a bit of a step up—and more privacy—try Port Townsend Inn (2020 E. Washington St., 360/385-2211 or 800/216-4985, www.porttownsendinn.com , $68 s or d). The normal rooms are pretty standard hotel fare with unremarkable furniture, but the grassy grounds are nice and there’s an indoor pool and hot tub on the premises. Splurgers can upgrade to a whirlpool-bath suite ($168 d) with wet bar.
Built in 1885, the Belmont Hotel and Restaurant (925 Water St., 360/385-3007, www.thebelmontpt.com , $79–129 s or d), was once host to sailors, ship captains, and gamblers. The ornately decorated Italianate-style inn right in the heart of downtown offers guests a chance to savor the past.
The Waterstreet Hotel (635 Water St., 360/385-5467 or 800/735-9810, www.waterstreethotelporttownsend.com , $50–160 s or d) is on the second and third floors of the 1889 N. D. Hill Building, with Water Street Brewing and Ale House on the first level. Suites with private decks overlooking the bay are available.
Built in 1889, the Palace Hotel (1004 Water St., 360/385-0773 or 800/962-0741, www.palacehotelpt.com,$59–159 s or d), once the “Palace of Sweets” brothel, is a beautifully restored boutique hotel with antique furnishings, high ceilings, and old-world charm. Rooms come decorated with antique furnishings and high ceilings, some with shared and some with private baths. Continental breakfast is served daily.