Ermita serves as the civic center of Manila, bearing the seat of city government and a large portion of the area's employment, business, and entertainment activities.

Ermita and its neighboring district Malate were originally posh neighborhoods for Manila's high society during the early 20th century, where large, grandiose mansions once stood.

During Spanish rule, the town was recorded by Miguel de Loarca in 1582: On the coast near Manila are Laguo, Malahat, Longalo, Palañac, Vakol, Minacaya, and Cavite.

[5] By the 19th century, although still considered as an "arrabal ", which refers to a rural area, urban expansion had slowly reached the northern portion of the district mainly due to the development of the Luneta, also called Bagumbayan, as a promenade at the coast of Manila Bay.

As part of Daniel Burnham's plans for Manila, influenced by the City Beautiful movement during the early 1900s, Ermita, alongside Intramuros' surrounding areas, had undergone a drastic redevelopment from being the outskirts to urban districts.

One notable structure built was the Insular Ice Plant, designed by consulting architect Edgar K. Bourne, who was also the head of the Bureau of Architecture in 1902 (under the Philippine Commission).

The wife and four children of future President Elpidio Quirino were murdered in Ermita, as was Supreme Court Associate Justice Anacleto Diaz.

[12] Nightlife in the area dwindled, though it later picked up with the help of the emergence of the nearby Malate district and the Roxas Boulevard revitalization efforts along Manila Bay.

Lawton Park N Ride, the city's main public transport hub, is located in the district along Padre Burgos Street, as well as the Manila Multimodal Terminal near the Pasig River.