This grand two-story building was built in 1882 as a bank, but it was reinvented as a hotel in 1900. News accounts at the time touted the Palace as a first-class lodging with the intimacy of a small European hotel. The New Mexico Historical Preservation Office helped to restore and reopen the hotel in 1990, keeping much of the historical detail intact. Some rooms have Western-style furnishings, others have neo-Victorian decor such as ruffled pillow coverings and bed skirts. The upstairs garden room is a peaceful spot for playing board games or reading.