[1] Levino's acts proved popular and, several months after opening, the theatre was closed in order to undergo "extensive alterations and decorations".

The Stolls renamed the Hall the Empire House of Varieties and reapplied for a licence permitting music and dancing at the venue.

[1][8] The Stolls enjoyed considerable success at the site and, by 1895, the size of the Hall was deemed insufficient to deal with the demand for tickets.

At the Cardiff site, the company also purchased an adjacent building and rebuilt the original hall to expanded capacity at a cost of between £22,000-£25,000.

[1][9] The new building was constructed of red brick and Bath stone and featured a tower in the centre of the structure and was designed by Frank Matcham.

Part of the redevelopment was aimed at the theatre becoming able to host two performances each night while the building's capacity was extended to accommodate around 2,300 spectators at a time.

[10] In its first month of opening, a fire broke out in one of the Palace's rooms and prompted an evacuation of the building although the damage was confined to one area.

[13] In order to avoid any chance of fire, the new Empire was constructed entirely of steel and concrete and was built with the stage entirely separate from the auditorium.