The Rialto Theatre was built and completed in 1921 and purchased by Arthur Kolstad. He eventually acquired other theatres in Hood River, and acted as owner and manager for many years. The theatre featured a large pipe organ and was very popular in the community for its films, comedy acts in its early years as well as live theatrical productions. It regularly featured weekly Vaudeville acts on Mondays. In 1927 it closed during winter months and underwent a renovation which included an RCA Photophone sound system, which was able to sync sound to movies. During this renovation the marquee featured advertisements which included one for a Mickey Mouse short. In the 1930s it featured films such as It's Love I'm After (1937).
In 1941, it is indicated that Kolstad sold the Theatre and it was acquired by Baynes McSwain who owned and operated many of the Hood River local theatres from the late 1940s to the 1980s. The theatre, in due course, underwent a remodel in 1944 which included a revamp of the interior, a ticket window, and an updated marquee. The Rialto was a prominent staple for moviegoing in Hood River for decades. It is indicated that the theatre was still running until the late 1960’s or early 1970’s, but was in dire condition. It has since been demolished and is now a parking lot.