The building was originally designed as a neighborhood cinema, facing the gardens of the Hospicio. It opened in December 1931 with the film The Unknown Singer, directed by Victor Tourjansky in 1931.
During the Spanish Civil War, it was converted into an illegal prison (cheka) by the Popular Front, where illegal detentions, torture, executions, and irregular burials took place. On December 4, 1974, Cine Barceló screened its final movie. Between 1975 and 1979, it operated as a theater and then, in 1980, as a nightclub in the Pachá chain, with its interior redesigned by Spanish architect Jordi Goula. At that point, the cinema sign was removed to be replaced by the nightclub’s branding. In April 2013, management disagreements between the Pachá brand and the building’s owner ended the relationship, separating the entertainment franchise from this iconic Rationalist building. The venue was then renamed Teatro Barceló. In 2024 it operates again as a night club.
In 2023, the property was declared a Cultural Heritage Site, with monument status.