Marcus Sonntag and associates were stockholders in the American Trust and Savings Bank, and Frederick H. Gruneburg, Sr. was President of Consolidated Theaters Corporation. Together they organized the Sonntag Hotel-Victory Theater complex. The Sonntag Hotel-Victory Theater was laid out at Sixth and Main Streets. It was built by Hoffman Construction Company with a total of 2,500 seats, with air conditioning, and was completed and opened to the public on June 16, 1921. The papers carried articles that reflected how great the Victory Theater and the adjoining Sonntag Hotel were. The Victory offered four vaudeville acts, a movie, a comedy routine, organ music and a ten-piece orchestra. Five years after the Victory Theater's opening, it was leased to the Loew's Incorporated movie chain, distributor for Metro-Goldwyn-Mayer (MGM) studios, and became the Loew's Victory. In 1928 the Loew's Victory showed Evansville's first "talking picture," Tenderloin.

The theater remained the Loew's Victory until 1971 when it was sold to Paul Stieler and Joe Koewler. Eventually, Joe Koewler became the sole owner. During this periond of its history, the balcony was split to hold two screens. The Victory remained a movie house until 1979. It later served time as a teenage nightclub.

In 1998 it was restored for use as a multi-purpose entertainment facility. The refurbished Victory Theater has state of the art lighting and sound equipment with heating and air conditioning and a new elevator. The theater provides a seating capacity of 1,900. A five story Performing Arts Center adjoins the theater itself. The Sonntag Hotel is the home of the Signature High School, Indiana's first charter high school.