At the turn of the 20th century, Perth was experiencing a period of high growth as a result of the Western Australian gold rush. The prosperity which resulted from this boom led to the construction of increasingly opulent baroque buildings. Local politician Thomas Molloy had commissioned the Metropole Hotel in 1896 and adjoining 1200-seat Theatre Royal in 1897, which included the first fully equipped theatre in the growing town. Soon after the completion of that complex, Molloy asked the same architect, William G. Wolf, to design an integrated theatre and hotel complex to be named "His Majesty's Theatre and Hotel" in honour of the recently crowned King Edward VII. The site selected for this new theatre was the corner of King Street and Hay Street, which in 1896 had been home to "Ye Olde Englishe Faire". In June 1902, Molloy applied to the Perth Licensing Court for planning permission to construct the theatre, and when he finally received permission, he promised completion within a year.