Behind the impressive facade of this building, which was once the site of the historic Teatro Alcázar and the old Trianon Palace, the theatre is part of the Smedia Group, which focuses on variety theatre, nationally and internationally award-winning comedies, and theatre in English.

The theatre opened its doors for the first time in 1925 with an operetta production. The building is the posthumous work of architect Eduardo Sánchez Eznarriaga. After the death of Eduardo Sánchez in 1924, his work was concluded by Eduardo Lozano Lardet.  

In 2012, the Teatro Alcázar was renamed the Teatro Cofidis Alcázar, following a firm commitment made by this company to theatre and culture in the Spanish capital.