Among the most interesting elements of the Hotel del Coronado's past is the well-known rumors of its haunting. The most prevalent story is that of a young woman by the name of Kate Morgan who checked in to the hotel in 1892 and was soon found dead on the premises. Room 3327, where Morgan was staying while she waited for her husband to return from a cross-country trip, has the most reports of ghostly encounters. Phenomena said to occur in the room includes odd noises, temperature change and even sightings of the woman herself.

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