The Aloha Theatre opened in April 1909 and was known as the Savoy Theatre from 1912 until June 1918. During this time, it was operated by J.J. Bryan, who also owned the Grand Theatre and Electric Theatre in Springfield. In 1918, A.H. McDonald purchased the building and transformed it into the Castle Theatre, which opened on November 1, 1920. The 600-seat venue featured a Moorish castle design and was listed as one of Oregon's "Important First Run Houses" in the 1922-23 Film Daily Yearbook. In 1923, McDonald and his son sold the building, but they continued to operate the theatre under a lease until 1925. The Castle Theatre closed on January 31, 1925, and the building later housed the Bank of Commerce and Miller’s Department Store before being demolished in the early 1970s for a parking lot. Nowadays there is a strip mall at that location with various different restaurants and a bakery. The building where the theater would have used to be is now "Off the Waffle".
The Castle Theatre would often show major film releases and different traveling films. There were bands that would sometimes play there as well. The owners would often advertise how cheap and affordable the ticket prices were. With them even introducing "fixed" prices.