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For Sale: The Historic Palace Restaurant & Saloon

14 December 2017   Tracey Horn

Known as Arizona’s Oldest Saloon that Opened in 1877, The Famous Palace Restaurant & Saloon for Sale

Owners announce retirement from owning the business for 21 years

Prescott, AZ: The Palace Restaurant & Saloon owners recently announced that they have chosen to place the business up for sale. The iconic restaurant, which is housed in the Palace building is on the National Register of Historic Places, has been in operations for the past 21 years and serves lunch and dinner and offers a monthly dinner theater show.  Stepping into The Palace Restaurant & Saloon is like stepping into a time when cowboys spent their nights drinking and gambling and enjoying the company of ladies of the evening. Even Doc Holliday, Virgil and Wyatt Earp once played cards here. In recent history, The Palace has been the back drop to many featured films, including Junior Bonner. 

When asked why they have chosen now to sell, owner Dave Michelson said “I love the restaurant business and it’s been very good to me and my family, but after being in the restaurant business for almost 53 years, I feel it’s time for me to hang up my hat. It’s bitter sweet for me and my partners.”

Restored to its former grandeur by Michelson and his business partners in 1996, The Palace reflects the atmosphere it had in 1901. “It’s a great building with lots of history,” said Michelson. “By restoring The Palace, we have not just restored a piece of Prescott, but a piece of the old West.” 

Patronized by locals and tourists, the feel of the old West still lingers in the air, captured in the warm wooden floors, old plaster walls, tin ceiling and the original quarter sawn oak and cherry bar. It has received many accolades and awards including Frommer’s travel directory which states: “If you’re in town for only one meal, have it at The Palace.” USA Today listed The Palace in 2014 as one of the Ten Best Bars that Serve Up History in a national survey.  

Built in 1877, the original Palace was destroyed in the Whiskey Row fire of 1900. But the original bar remained – patrons picked it up and carried it out of the burning building. There on the street, the owners at the time continued serving beer and whiskey throughout the night. Customers can still belly up to the original bar for a drink or to admire its polished gleaming surface. 

A steak and seafood restaurant with full lunch and dinner menus, The Palace also features old photographs, posters of Hollywood films shot at The Palace and historical memorabilia on display, including mining and gambling. 

“Gambling was a big part of our Western heritage,” said Michelson. “Some of the gambling collection displayed are pieces that were used in The Palace and on Whiskey Row back in the turn of the century.”

The Palace Restaurant, located at 120 S. Montezuma St., is open seven days a week. For more information, call 928-541-1996 or go online to If you are interested in discussing purchasing the business, please contact Raymond Zogob at 928-443-0766.