Two Austin Theaters Plan $65 Million Revamp

The most radical changes in the $65 million campaign for the futures of Paramount and State theaters is a reconfiguration of the State that will allow flexible, intimate seating for up to 500 guests.

Leaders from two of Austin’s most cherished and historic theaters plan to transform those venues over the next three years as part of a $65 million campaign.

First, the Paramount Theatre, built in 1915 for live performances, will be restored and preserved during 2026 and 2027. Among the most anticipated improvements: replacing the pinched seating that was designed for audiences from a different era.

Unobtrusive work on the Paramount’s décor by artisans from EverGreene, a specialty contractor, is already underway. The theater will close for less than a year while more intensive tasks are completed.

When the Paramount is done, its next-door neighbor, the State Theatre — built in 1935 to exhibit motion pictures — will undergo a thorough renovation. The update will preserve its familiar art deco façade, while radically reinventing its interior spaces with similar décor for flexible, intimate performances complemented by enhanced audience services.

Both theater projects will increase ADA access, in part by adding an elevator to be shared by the venues.

"For a combined 200 years, these two historic venues have enriched the Austin community by shining a light on the very best in music, comedy, movies, thought-provoking speakers and beyond," said Jim Ritts, CEO and executive director of the Austin Theatre Alliance, which owns and operates both theaters. "Much more than entertainment, the Paramount and State change the way people see the world. And now they need Austin’s help to make sure they ‘shine on’ for everyone to enjoy for the next century."

What's the cost breakdown?

The 1915 Paramount Theatre and 1935 State Theatre exteriors will be thoroughly refreshed while retaining their historic looks.

So far, the Alliance has raised at least $27 million for its "Shine On" design, building and endowment campaign. Its leaders have set a total goal of $65 million — $55 million is slated for design and construction and $10 million for an endowment. Architectural designs by DLR Group and Clayton Korte, as well as engineering plans have, for the most part, been completed.

The Paramount Theatre will close to the public in June 2026, and the extensive work is expected to take eight to nine months to complete. Meanwhile, many of the Paramount’s programs will move to other Austin venues, including the State.

The State project involves a "total structural reimagining." Critics have long said that it was never transformed from a movie theater into a live venue in a completely satisfying way, despite several improvements made since the 1990s. The current project is expected to take 13 to 16 months to finish after the Paramount reopens.

The State owns an easement that covers 93% of the basement of 721 Congress Ave., the property on which the Hyatt Centric Hotel rises on its north side. A series of development agreements have allowed both hotel and theater projects to go forward.

The theatrical roles

The interiors of the State Theatre will take on an art deco look to match its exterior. Lobbies, concession stands and restrooms are among the planned upgrades.

During the early 20th century, the Paramount — born as the Majestic Theatre — dominated a row of entertainment venues along both sides of Congress Avenue. Although it was built for variety acts during the vaudeville era, it instantly became a prime place to exhibit major movies as well.

Its eventual operator, the Dallas-based Interstate Theaters chain, built the State next door in 1935 and soon after added two similar suburban theaters — the Austin on South Congress Avenue and the Varsity on the Drag. While both formerly suburban buildings stand, they no longer serve as theaters.

After the Interstate chain dissolved, the Paramount and State faced decay and possible demolition. Supporters were galvanized by the potential loss of downtown’s "populist palace," and citywide community efforts during the 1970s brought back the Paramount. The State, on the other hand, screened down-market movies for a while, before it went essentially vacant. Various entities tried to revive it as a live venue.

Despite a catastrophic flood in 2006, the State has been active in recent years.

Together, the two venues present hundreds of shows annually, reach more than 30,000 Central Texas schoolchildren and produce the Moontower Comedy Festival, one of the country’s largest such events, every April. They host red-carpet-ready movies for the Austin Film Festival and the South by Southwest Film Festival. For decades, the Summer Classic Film Series — which reintroduces movies that many audiences had previously only seen on small screens — has been among the Paramount’s defining presentations.

What's in the Paramount plan?

While many beloved aspects of the Paramount Theatre will be restored, additions include modern yet period appropriate seating, ADA accessibility, and rewiring, as well as more lounges and concession stands.

Improvements to the Paramount have been underway for some time, but other projects require closing down the venue.

• Architecture: Restoration of paint, plaster molding, chandeliers and other historical elements; updating of energy-efficient systems and infrastructure.
• Audience experience: Replacement of all 1,200 seats with modern yet period-appropriate seating; improvements to aisle lighting and ADA access, including more elevator capacity; expanded restrooms and concession stands.
• Technology: Revitalization of wiring, sound and the lighting behind the historical finishes.
• Lounges: A large space, conceived in the early 20th-century as a ballroom, will become a lounge for community events, happy hours and other gatherings. Another lounge, this one on the third floor, will honor donors John Paul and Eloise DeJoria as "JP’s Peace, Love and Happiness Lounge."

What's in the State plan?

The plans for the State Theatre call for a more thorough renovation.

A rooftop lounge and a basement "speakeasy" are among the planned amenities for the State Theater.

• Exterior to interior: Refreshing the historic art deco exterior and completely transforming the interior in a style inspired by art deco.
• Access: Installing a new elevator that will serve both theaters and ensure full ADA accessibility.
• Flexible seating: This is perhaps the most radical change: increasing the current 300-seat capacity to allow 435 traditional seats along with cabaret-style seating near the stage for a total, flexible capacity of 500. This will allow the theater to present a greater variety of programs.
• Shared space: The plan is to rent the flexible space to nonprofit arts groups at reduced rates. Despite an increase in arts venues since the 1990s, the number and affordability of spaces has not kept up with Austin's growing arts scene.
• Hospitality: Adding a basement "speakeasy," a rooftop deck and four concession stands for reduced refreshment lines while tripling the restroom capacity. Although Austin audiences clearly love these historic theaters, they have grown accustomed to the amenities offered in newer venues.

The wider impact

The 700 block of Congress Avenue — once the heart of Austin’s entertainment district — has in recent years begun to recharge its once potent social energy with projects that include The Contemporary Austin at the Jones Center, the new Hyatt Centric Hotel and improvements to the Stephen F. Austin Royal Sonesta Hotel, along with smaller projects.

The twin theater ventures are intended to add a jolt to that social energy.

"Believe it or not, the Paramount Theatre has not undergone a full restoration in over five decades," said Maica Jordan, chief development officer of the Austin Theatre Alliance, referring to efforts to save and restore the old vaudeville theater during the 1970s. "And this identity-defining transformation of the State has been a long time coming.

"It’s really going to have a huge impact on downtown Austin."