Tivoli Avenida Liberdade Lisboa was constructed during an era marked by global industrialization following World War I and before World War II.

The hotel first took its name from the landmark Teatro Tivoli, which still occupies the western corner of the Avenida de Liberdade. Predating the Tivoli Avenida Liberdade Lisboa, the Pensao Tivoli (a small boarding house) first opened its doors next to the theater in 1933. This quaint building it later grew into a full-service hotel in 1940. Unfortunately, the crises wrought by the Spanish Civil War and World War II set back any further plans to expand the business into the 1950s. The owners of the Pensao Tivoli finally gained enough open a second location across the street in 1957. It is this structure that constitutes the Tivoli Avenida Liberdade Lisboa. The hotel quickly became immensely popular among the many American and European travelers who flocked to Lisbon during the 1960s. The Tivoli Avenida Liberdade Lisboa continued to be among the city’s most renowned holiday destinations ever since.