Designed by Dezső Jakab, Marcell Komor and Géza Márkus, the theatre was completed in 9 months.
Equipped with modern machinery, including an organ, it had a 14 wide and 8.5 meter tall stage.
Intended for the working masses, the theatre was simplistic in style, except for a large mural made by Bertalan Pór.
In 1917 Gábor Faludi modernized the building, reduced the number of seats to 2400, and changed the name to Városi Színház (City Theatre).
From 1948 it returned to its original function, and in 1951 the building was brought under the supervision of the State Opera House, and operated as its secondary stage until its 2007 closure.