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The original Arlequín Theatre was designed by Enrique López-Izquierdo. It is very close to the Gran Vía, in the basement of an impressive building, known as Los Sótanos. Throughout history, this area has been home to a Dominican Convent, an Artillery Barracks, the Recreo Theatre and, finally, a Jesuit house, which was burnt down in May 1931.

The Arlequín, like the Bellas Artes and the Príncipe, has the uniqueness of being below street level. It is currently a comfortable hall with seating capacity for 350 spectators and a rectangular layout.  Most of its seating capacity is in the stalls, although it does have a small circle. Both the stage and the dressing rooms have been fully rebuilt and fitted out with comforts. 

After a period operating as a cinema, it returned to theatre activity in 1999 thanks to Enrique and Alain Cornejo. During the first decade of the 21st century, the theatre opened and closed following changes of ownership until Arco Mediterráneo Proartistook over its management in September 2013, with José Luis Sánchez Codina at the helm. The theatre changed its name to La Strada in tribute to Fellini’s film. However, in mid-April 2014, it went back to being called Arlequín but with the addition of Gran Vía.

Its programme includes musicals, comedies, improvisation and many other shows.