Rodolfo and Manuel Cruz opened the Alhambra Theater on August 1, 1914. The architect of this building was Henry Trost and the cost of the construction was $150,000. Its façade was created in Spanish Moorish design executed in plaster. When this theater was opened, the lobby was designed with red and gold colors. It had shops on the sides and a confectionary on the second floor. The theater had the service of nursery at the entrance, in that way mothers could enjoy the movies while nurses were in charge of the babies.
In 1918, the proprietors of the Alhambra, John and Vance Fulkerson, purchased the largest pipe organ of the Southwest. The cost was $20,000 and was first played in February 12. This organ was used to accompany the silent films. Sometimes a lived orchestra performed during the films. The organ was removed in 1930 because with the arrival of sound movies it was not needed anymore.
The Alhambra was renovated in 1920. It was reopened with a new name, “The Palace.” The new manager was J.M. Edgar Hart. The owner of the Palace was Southern Enterprises Inc. and hired the engineer Arthur J. Jones for the renovation of the lobby and front that were totally rebuilt. The seats were rearranged and new floor was placed over the tile. It was hung a new electric sign outside of “The Place,” over the sidewalk.
In July 1975 television became a serious competition and adult films were shown to attract people. In that time, the Californians Don Gotlien and Bob Garner invested $15,000 in El Paso to start a business called “Movie One Theaters.” They leased the Palace and the Capri theaters to show adult films. In December 1984 the Palace showed the last film.
In that year, in 1984, Franklyn Land and Resources, bought the Palace from a Mexican Family. Franklyn Land hired Linda Hammantree, Ken Mc Graw, Tita Bowman, and Heriberto Godina to restore the façade of the Palace. The cost expected for the restoration was $75,000.
In 1986 Franklyn Land sold the Palace to Tanny Berg and Aaron Wechter for $500,000. Berg and Wechter sold the building in 1992 to the businessman Jack Shirazi who hired the architect Joe Meléndez to transform the theater in a night club. He invested $200,000.
In 1999, the property was sold to a Cuban couple from Florida, the Magrettes. They also hired Meléndez to convert the night club in the Upscale Club Xcape. It opened in 2000 and it was invested 1 million. This building continues operating like a night club.