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Inaugurated on 10 June 1916, it was built according to the plans of the architect José Espelius. For the opening, presided by King Alfonso XIII and Queen Victoria Eugenia, the chosen piece was "El Capricho de las Damas" (The Ladies’ Whim).

The façade is one of the most striking of the Madrid theatres, with windows by Maumejean and mosaics from Talavera. It is able to hold an audience of more than 600 people. Nothing remains of the original interior decoration. Above the stalls is a skylight which, during the early years, was opened to ventilate the hall.

During the Second Republic it was called simply Victoria and in October 1936 it was rechristened with the name of the dramatist Joaquín Dicenta. After the civil war, it returned to its original name. Although in its early era it produced numerous musical shows, it became one of the theatres specialising in high comedy.

The Teatro Reina Victoria was acquired in January 2018 by the García Azpiroz family, owners of Pescaderías Coruñesas, from the company Arequipa Producciones owned by the actor Carlos Sobera. In September 2020, Pentación Sículos, under the direction of Jesús Cimarro, took over the running of this centrally located theatre.