The markets were built in 1891 by McRae, City Architect, and the structural engineer Norman Selfe, but were commercially unsuccessful because they were located too far from Darling Harbour.

Attractions included elaborate circus acts with animals such as elephants and seals, theatre and vaudeville shows.

The old site was divided up between the Manning Building (1895–1924), facing Pitt Street, and the western half, which was rebuilt as a theatre in 1928.

The redevelopment was split into two major contracts: the eastern half now known as the Manning Building was awarded to J. M. & A. Pringle in May 1913 and the Hippodrome theatre to the west to William Maston and Thomas Yates in December the same year.

Whilst in the United States, architect John Eberson was engaged to provide White with designs for the conversion of the Hippodrome.

The conversion involved remodelling the interior and raising the roof trusses to make room for the atmospheric ceiling and extended slope of the new gallery.

Maintenance economies gradually put machinery and lighting out of action and in 1945 all "unwanted" decoration including banners, tapestries and artificial foliage was stripped from the interiors.

During the 1990s the lease was transferred to Ipoh Garden Developments Pty Ltd. At this time the Capitol Theatre underwent a detailed restoration and reconstruction to recover the original 1928 experience.

[2][6] A brick building with stone cornices, strings and other dressings, ornamental terracotta capitals, spandrils, rosettes etc.

It was intended as a hippodrome for arena theatre and featured stone cornices, terra-cotta capitals, rosettes and tiled panels.

The architect Henry White turned the interior into a movie palace in 1927, creating the effect of an internal Italian garden or piazza.

The structural fabric of the Capitol and Manning Buildings have a remarkable history of adaptation, reconstruction and restoration to accommodate changing uses.

[2][6]: 27–28 The place is important in demonstrating aesthetic characteristics and/or a high degree of creative or technical achievement in New South Wales.