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Film shows started here before 1910 on an occasional basis and in 1913 a Mr. Davies obtained as lease from the Borough Council on the property and started running the venue as a permanent cinema. He ran film shows here through two World Wars, the latter part of the life of the venue with his wife in control. It is speculated that they also controlled the Town Hall Cinema and Empire Cinema, both in Holyhead.
The venue seated 500 patrons and transferred to sound with a British Acoustic Sound system. Programmes were changed three times per week on Mondays, Wednesdays and Fridays and also held very popular Saturday Morning Childrens Matinees – many of Caernarfons young got into the habit of regular film going here. The popular local name for the venue was "The bug house".
In 1948 a Mr. Jacobs took over the lease and he again sold out to Paramount Picture Theatres Ltd. in 1959. As Paramount already had control of the "Majestic" and the "Empire", the only other cinemas in Caernarfon, the Guildhall was soon superfluous to their requirements and it was soon closed as unviable.
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