Gaetano A. Lucchese, of the San Antonio family behind the Lucchese Boot Company, had already built two successful Spanish-language theaters in San Antonio when he set out to build one that could stand beside the Majestic and the Aztec. He hired architect N. Straus Nayfach, who designed the Alameda in the Streamline Moderne style, with curving walls and almost no right angles, under an 86-foot marquee lit with cold cathode tubes that shone brighter than neon.
The Alameda opened on Houston Street in March 1949. Lucchese's sister Josephine, an opera singer, sang the national anthem, and the singing cowboy Gene Autry made a surprise appearance. The first feature was the Mexican film Revancha, starring Ninón Sevilla. With about 2,400 seats, the Alameda was the largest theater in the United States built for Spanish-language films and stage shows. Its seating was desegregated from the start, at a time when segregation limited access for many Mexican Americans, and other theaters nearby did not offer the same.
For three decades the Alameda paired Mexican films with variedades, live variety shows. Pedro Infante, Cantinflas, María Félix and Vicente Fernández all appeared there. Two murals of the histories of Texas and Mexico, designed by local artist Pedro Teran and painted in phosphorescent paint by Frank Lackner of Chicago's Hanns Teichert Company, glow under black light. The surrounding building held the Mexican Consulate, the first Hispanic Chamber of Commerce in the United States and the Spanish-language radio station KCOR.
The theater closed in the 1980s, and the City of San Antonio acquired it in 1995. In 2017 the city, Bexar County, Texas Public Radio and La Familia Cortez restaurants formed the Alameda Theater Conservancy to restore it, with Texas Public Radio's headquarters planned for the backstage building. Walking tours began in 2025. The conservancy now plans to reopen in 2028 with 1,100 seats and programming of Latino music, theater, dance and film screenings, operated by ATG Entertainment, which also runs the Majestic and Empire.