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The historic Teatro Albéniz, built in 1945 during the post-war period between Puerta del Sol and Plaza de Jacinto Benavente, is currently located within the UMusic Hotel Teatro Albéniz, a complex consisting of a 5-star hotel and an auditorium for concerts and shows. Following its closure in December 2008, it is now being brought back to life in the last quarter of 2022.

The auditorium can accommodate up to 898 seats.

The building that houses the UMusic Hotel Teatro Albéniz was declared a Cultural Interest Site in 2016. In recent years, it has undergone a full renovation, which has respected all protected features. Thanks to this renovation, the façade once again has 8 of the 11 original wooden automata created by sculptor Angel Ferrant when the theatre was first built. It is a tableau of human figures, commissioned in 1943, that represent different regional types. They are called automata because they have a mechanism that allows them to move their arms (playing a guitar, fanning themselves, moving their body...)

During the first ten years of the theatre's existence, it was devoted to putting on reviews, but on the 16th February 1955 it became a cinema. Madrid’s Regional Government leased the building in 1985 to  host the capital's autumn festival, which it did until it closed as a theatre.