Commissioned by the theatre chain Jensen and Herberg as a companion to the Liberty Theater in Astoria, Oregon, architects Bennes and Herzog designed the building in multiple styles including Spanish Colonial Revival (exterior) and after the Baths of Caracalla and Bernini (interior).

Starting in 2011, major renovations were done, including new seats, screens, sound systems and an updated paint job.

In 2013, a Kickstarter campaign raised the funds necessary to erect a new marquee, and in 2015, 70-millimeter capability was re-installed, making it the sole remaining theater in the state to have it.

The theater also has hosted many special guests since 2015, including Quentin Tarantino, Pam Grier, Michael Ironside, Piper Laurie and Joe Dante.

In December 2015, Hollywood Theatre announced plans to open an annex theater in Portland International Airport.