Palacios, Texas: The Shrimp Capital of Texas

As we were initially planning a drive down the coast a couple of years ago, we saw a video that a daytripper had done while visiting this small town. I thought it was hokey and that he was mispronouncing the name of the town. He was. But then, so were we.  It’s Puh-lashes (like eyelashes) is what we were told.

The town sits on the shores of TresPalacios Bay and in 1901 was just a bull pasture. The owner sold the land to the Texas Rice Development company who then subdivided into 160-acre tracts. The original name of the town was TresPalacios but when it came time to open a post office, they found that name already taken so it was shortened to Palacios.

The Hotel Palacios (later the Luther Hotel) was built in 190 by the Texas Rice Development Company. It had a 300 foot porch. It started out as a 16 room structure. Then in 1905, it was moved to the beach front, where it stands today, and then expanded. 

In 1936, it was purchased by Charles and Elsie Luther and the hotel became a hub for tourists, rice farmers and military personnel. They even had famous people like Shirley Temple and Rita Hayworth! It closed in 2022 and was vacant. (I found these two photos on the internet).

In 2024, it was purchased by JP Bryan and is in the process of being restored. This is very exciting for me. Maybe we'll come back and stay here when it's all done.

In 1926, Camp Hulen was opened as a training center for the 36^th infantry of the Texas National Guard. The camp was then leased by the War Department during World War II. After the war, Palacios began to decline.

We got there around noon and found a quiet little town on the bay. I’m not sure what I was expecting but I was pleasantly surprised. We parked on the water. As I mentioned, the city is right on TresPalacios Bay and they have a huge seawall. They also have a lot of piers that used to hold these magnificent pavilions.  Now they are just fishing piers.

After our picnic lunch by the water, we went over to the City By the Sea Museum. That’s right, Palacios has a small museum. It’s free but worth a visit. They opened at noon and we were right there waiting, much to the surprise of the volunteers that ran the place. In the background of this photo you can see the newest pavilion which was built in 2019.

This was the fella that gave us the pronunciation of the town. He also told us that if you lived here, you were either a farmer or a shrimper. The shrimping industry came to Palacios in 1922 but wasn't initially successful because people didn't realize you could eat shrimp. What? We love shrimp! But back then, they didn't know but they learned and shrimping became a big industry. In the 1970s, a lot of Vietnamese immigrants moved here to take part in that industry. It was rocky at first but eventually, the everyone worked it out. This is the first floor of the museum where most of the exhibits are.

This old telephone booth was in the Luther Hotel in the 1940s. It was from here that the soldiers would call home during World War II when they were stationed in Palacios. I love this stuff!

The City by the Sea Museum is in this building, the R.J. Hall Building which was built in 1910. It originally housed a mercantile store and eventually a Montgomery Wards. Remember that place? 

Palacios was very big on pavilions. This one was built in 1904 and at the end of the pier (shown below). It was used for entertainment and had a dance hall and a dock by which people and goods could be loaded and unloaded.

This is that same pier today. As you can imagine, there were several hurricanes that hit this town. The pavilion was so battered by the hurricanes that it was torn down in 1935. This is one of the places where we walked along the water. 

This cool looking building was erected in 1913 and is called the Elder Building. It was originally built as a garage with the upper floor as the Masonic Lodge. The symbol for the Lodge was between the two upper windows but has since been removed. Now it's a machine shop on the bottom and an apartment on the second floor, though it doesn't really look like it's occupied.

Built in 1908, this was once the Citizens State Bank on the first floor and the Masonic Lodge on the second. Those Masons really get around! After merging with the Palacios State Bank, it closed in 1936.

Like most of the towns in the area, Palacios had significant railroad activity. Here in the Railroad park they have a retired caboose from the Southern Pacific Railroad.

There's not much to this town. Only 4,300 people live here, which is more than Matagorda. They have a Lowe's Market for a grocery store along with your standard Dollar General. I saw a few fast food places. No McDonald's but they did have Sonic and Dairy Queen. 

I don't know what it was about the vibe of this town that called to me but I liked it. I hoping that once the Luther Hotel is complete maybe we can go back and stay over. Meanwhile, if you're in the area, check it out!