Located on East Main Street, Welland’s Capitol Theatre was constructed in 1925 as an extra amenity for neighbour the Reeta Hotel. Both the Capitol Theatre and Reeta Hotel were owned by Samuel Lambert. Capitol Theatre was the largest theatre in the Niagara Peninsula showing motion picture and vaudeville performances. Despite its near immediate popularity with the community, Capitol Theatre fell victim to the Great Depression and declared bankruptcy in 1934. It was sold to Famous Players Theatre and brought back to life the same year. The Capitol Theatre came under new ownership once again in 1973 with the sale of the Reeta Hotel. With the motion picture industry taking a dive in the 1970s and unable to transition to other entertainment industries, the Capitol Theatre was demolished in 1978.