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One of the oldest entertainment venues in Europe, the Manoel Theatre was built in Valletta in 1731. The funds for its construction were provided by Grand Master Antonio Manoel de Villena, after whom the theatre was later named. De Villena, erecting the theatre, took care of his knights. Henceforth, members of the Order of Malta could attend performances in their spare time. Above the main portal of the Manoel Theatre is carved the motto "For honest recreation and entertainment".

The building of the theatre was constructed very quickly. The place for it was allocated on a quiet, narrow street. The first performance was held here on 9 January 1732. Some knights-hospitallers were involved in the performance. Since then, much has changed. On the stage of the Manoel Theatre, the most celebrated artists and musicians have performed. The small 600-seat auditorium has amazing acoustics. It is said that on the last row you can hear the rustling of the pages of the conductor's score. This acoustics was achieved by placing large open containers of water under the floor of the auditorium.

For some time the theatre building was a lodging house for beggars. During the Second World War, people hid here from bombing raids.

Nowadays the theatre has been extended by the premises of the neighbouring Bonici Palace. In 2005 the auditorium and the inner courtyard were reconstructed and a cosy cafe was opened there. There is also a museum at the theatre, the exposition of which tells about the history of this institution. There are old posters, photographs, theatre costumes and scenery, portraits of leading actors of the past.