After years of threatened commercial redevelopment, the Stanley was renovated as a stage theatre between 1997 and 1998 and subsequently awarded status as a heritage building.

As a stage for the Arts Club, the Stanley has been used to put on classics, Broadway musicals and other large productions, including Swing!, My Fair Lady, Miss Saigon, Disney's Beauty and the Beast and Irving Berlin's White Christmas.

[5] In order to make as high quality a theatre as possible, Simmonds used only the best materials he could find, including tindle stone from Winnipeg and tiles from Italy, along with chandeliers, carpets and furnishings from local merchants.

[8] By October 1978, the auditorium was equipped with Dolby Stereo,[10] and by December 1985 its sound system was upgraded and certified to THX quality assurance standards.

[32] Its closure was part of a long trend: The number of Famous Players theatres had dropped from 419 in 1954 to 196 in 1969,[3] and would fall to 80, some in partnership with other companies, by the time it was taken over by Cineplex Galaxy Entertainment in 2005.

[42] Money came from fundraising campaigns by the Arts Club and Vancouver TheatreSports, at least $3.9 million from the provincial and federal government,[43] a $100,000 grant from the City of Vancouver,[4] the purchase of a density transfer to the One Wall Centre[44] by Peter Wall for $1.2 million,[45] as well as corporate sponsorship by du Maurier,[1] although du Maurier would later withdraw as a sponsor because of federal restrictions on tobacco advertising.

[1][5] Weeks was initially disappointed with the state of the pre-renovated theatre, which looked "pretty tired" with its aged orange walls and sticky, soft drink-stained carpets.

[46] A 2003 study claimed the Stanley's renovation brought positive economic effects to the theatre's local area, bounded by 8th Street and 17th between Fir and Hemlock.

[48] In addition to showing Arts Club productions, the theatre is rented out for other purposes, including business and educational presentations,[40] and has been used for comedy acts and concerts, such as Lorne Elliott,[49] Francis Cabrel,[50] and RyanDan.