Founded in 2004 by Ed Bailey and John Guggenmos, Halo first gained attention by being one of the few smoke-free gay bars in the city before its smoking ban was enacted in January 2007.

[1] In 2007, Bailey and Guggenmos sold their remaining share of Halo to Babak Movahedi and opened Town Danceboutique on U Street, NW.

[1] In September 2005, the first floor of Halo opened bringing the total amount of space to approximately 3,000 square feet (280 m2) with a capacity for 200 people.

[6] In August 2008, the second floor underwent a $200,000 (equivalent to $280,000 in 2023[7]) renovation designed by Paolo Zavala of VOA Associates Incorporated that was described as retro-futuristic and compared to scenes from Stanley Kubrick's movie, A Clockwork Orange.

[8] The reopening of the second floor bar took place on September 5, 2008, and included a ribbon cutting ceremony by Adrian Fenty, then the mayor of the District of Columbia.