In 1912, J.A. Segerberg, manager of the New Sheridan Hotel, recognized Telluride's need for a venue to host the lavish parties, balls, and entertainment that accompanied the influx of wealthy mine owners and aristocrats. The Opera House was built in a style that lands between the Art Nouveau style of the late 1880s and the Craftsman style of the 1920s. The construction was completed in March of 1913 and hosted famous entertainers such as Sarah Bernhardt and Socialist Presidential Candidate Eugene Debs. The Opera House has flourished and fallen into disuse concurrent with the economic climate of the town of Telluride throughout the past century.
In 1991, the Opera House was in a state of disrepair and in jeopardy of commercial development. At this time, the Sheridan Arts Foundation was founded as a 501 (c) (3) non-profit, and together with the Town of Telluride and the Colorado Historical Society, they undertook the project of restoring the building.
Today, the Opera House is a renowned venue for live music, fundraisers, the local theatre troupes, weddings, and other special events. The Opera House can hold up to 240 people in theater seating. It has also the unique ability to have partial seating, cabaret seating, and even no seating at all.