On the ground floor of the historic Panama Hotel is a serene teahouse with tons of personality and a subtle Asian flair that reflects its former life as a Japanese bathhouse. The space is lovely, with exposed-brick walls, shiny, hardwood floors, and black-and-white photos of old Seattle (many of them relating to the history of the city's Japanese immigrants). Kick back with an individual pot of tea—there are dozens of varieties—or an espresso, along with a plate of small Japanese confections. This is a good place to bring a book, as it's usually calm and quiet. The teahouse obtained a liquor license a few years ago, and now offers wine, beer, and cocktails as well.