Old World Luxury in San Francisco. Palace Hotel delivers an old world luxury experience in San Francisco. The first luxury hotel build in San Francisco, with impressive lobby, located in a great area of San Francisco. Located a minute’s walk from Montgomery Station Metro and 9 minutes from Union Square, this turn of the century grande dame is a Downtown landmark with 53,000 square feet of meeting space. The 500+ rooms in 4 sizes feature 14-foot ceilings and contemporary furnishings. Suites with separate living rooms have 2 full-length windows with city views.