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Box pIan of the Palace Theatre, Elizabeth Street, Hobart, upstairs. Undated. The Palace Theatre was opened around 1914 and was closed November 1925 when it was converted into retail use by H.E. Round. In later years it was occupied by Wales Travel Service and by 1981 it was a bank. It was demolished and a new building was erected on the site. In 2016 an new development was approved Designed by Jaws Architects, the Palace Hotel takes its name from the Palace Theatre, which stood on the site for much of the twentieth century