Hollywood Theater opened on December 20, 1913, the second to open in Hollywood's emerging theater district. A 700-seat Nickelodeon, it was owned by H.L. Lewis and designed in the Romanesque style by Krempel and Erkes.

In 1927, the theater was remodeled by Clifford Balch and in 1936, it was remodeled a second time by S. Charles Lee. In the second remodel, the building's original white brick façade was replaced with an art deco version, and a neon marquee was added, the marquee angled to catch the eye of passing motorists. By 1938, the theater was operated by Fox West Coast Theatres as a second run move-over house for the Chinese Theatre. The theater was remodeled a final time in 1977.

In 1984, the Hollywood Boulevard Commercial and Entertainment District was added to the National Register of Historic Places, with Hollywood Theater listed as a contributing property in the district. Specifically noted were the theater's neon signage, stucco facade, terrazzo and brick materials, and that the theater is the oldest in Hollywood.

The theater was shut down by Mann Theatres in 1992, and two years later the Guinness World of Records Museum moved into the building.

In 2024, Hollywood Theatre was one of four Hollywood and Highland buildings proposed for demolition to make way for a metro entrance on the K Line Northern Extension. The other buildings are 6806 Hollywood Boulevard, Bank of America Building, and Lee Drug.

• List of contributing properties in the Hollywood Boulevard Commercial and Entertainment District