After the Mercato Theater Swap, North Naples Ends Up With Fewer Screens

Since Alamo Drafthouse closed at Mercato, the two theaters facing each other across U.S. 41 at Vanderbilt Beach Road have been down to 10 screens from 21. That drop is temporary. Paragon Theaters is keeping all 10 of its screens at The Pavilion open through the holidays because its planned Mercato theater isn't ready yet. When Mercato reopens, the count is planned to climb back to 17, still four fewer than in August, and one company will run both theaters.

For the next few months, what matters is which theater is showing what, and when. After that, the open question is what moves into the four screens Paragon gives up.

On Sept. 9, Twenty-One Screens Became Ten

Until this fall, the intersection had two competing movie-dining operators. Alamo Drafthouse Cinema ran 11 screens at Mercato. Paragon ran 10 at The Pavilion, 833 Vanderbilt Beach Road, on the other side of U.S. 41. Naples Press reported that Alamo closed its North Naples location on Sept. 9. It had been Alamo's only Florida theater.

The Mercato building has already changed operators more than once. Alamo replaced the longtime Silverspot Cinema there in April 2024 with a full food and cocktail menu and a nine-hole miniature golf course. Within a few months of that opening, Sony Pictures Experiences acquired the Austin-based chain, and the mini golf was eventually retired. In a Sept. 4 statement quoted by Naples Press, an Alamo spokesperson called the closure a difficult decision and said the company was relieved the building would keep operating as a movie theater under Paragon. Alamo also said it would offer severance to its staff and help connect interested employees with Paragon.

Alamo's Southwest Florida page says tickets for dates after the closure would be canceled and refunded automatically, and Season Pass memberships would be canceled with prorated refunds. Anyone who bought through Fandango or Atom was told to contact those services directly.

Here is how the screen count at the intersection changes from this summer through Paragon's planned end state:

The last row is still a plan. In its October coverage, Naples Press described Paragon's Mercato lease as likely, and Paragon's cut at The Pavilion depends on that lease going through.

Why the Pavilion Is Keeping All Ten Through the Holidays

The four screens Paragon plans to close are still running now, and the reason is timing. Michael Whalen, Paragon's co-CEO and co-owner, explained the plan to Naples Press:

"We are still operating those four screens probably minimally until the end of the year because Mercato probably won't open until December or January. So, we'll continue to operate the 10 screens at Naples through the holiday."

For the next couple of months, that leaves one 10-screen theater serving demand that 21 screens used to split. Through Thanksgiving and the start of season, the Pavilion is the only movie option at this intersection.

Dec. 18 Depends on the Seats

Paragon is aiming to open Mercato on Dec. 18, the day the sequels to The Avengers and Dune come out. It's a sensible target, since those two releases are likely to fill a lot of seats that week.

The risk is the seating itself. Whalen told Naples Press he won't open Mercato until every auditorium has been refitted with Lux Box, Paragon's premium seating, which he called "the biggest feature we have." He also said the seats may not be made and delivered in time. "If the seats are delayed, which it looks like they are, it's probably a beginning of January event now," he said, adding that he was still trying to hit the 18th.

So if you're planning to see either sequel on opening weekend, plan on the Pavilion. Paragon has said those 10 screens stay open through the holidays, while the Mercato date is still uncertain.

The Four-Screen Building Has Changed Hands Before

The screens Paragon plans to close aren't in the main theater. They sit in a separate 9,850-square-foot building at the back of The Pavilion's northwest corner, joined to the main theater by a hallway near the bar. By Whalen's account to Naples Press, the space has switched back and forth several times:

1. The whole site started as a 10-screen theater.
2. It shrank to a six-plex, and the discount home goods store Tuesday Morning took over part of the space.
3. Paragon leased the six screens from Equity One, before Regency Centers owned the center.
4. When the Tuesday Morning space opened up, Paragon turned it back into theaters, bringing the count back to 10.

The next step could bring in a new tenant. Andrew Pressler, a leasing agent for Regency Centers, which owns The Pavilion, told Naples Press that the owner has the option to take back the old Tuesday Morning space and lease it to someone else, though he said "nothing's really fleshed out completely 100%."

What Could Replace Those Screens

Whalen named three possible uses. An indoor soccer operator has looked at the space. The cycle shop already at the center is considering it for extra inventory storage. And Paragon is thinking about keeping the space itself and installing six or so golf simulators.

Paragon has a practical edge with the golf idea because of that hallway. A standalone simulator business would need to build its own kitchen, bar and restrooms. A simulator lounge connected to Paragon's existing bar and concessions would only need the simulators. "Here, it's intact. I already have a kitchen. I already have the bar. I'm really just putting in simulators," Whalen said, adding that the cost would be lower than it would be for an outside operator.

Whatever goes in, Paragon's target stays the same: six screens at The Pavilion and 11 at Mercato. "The goal is to have 17 screens functioning in Naples. That's where we want to be. We think that's the sweet spot," Whalen said.

If the four screens become simulators, an evening at The Pavilion could include a round of indoor golf and a drink at the same bar before a movie. If an indoor soccer operator or a retailer takes the space, The Pavilion gains a business that had no room there before.

Two Theaters, Two Different Pitches

Once one company runs both theaters, they stop competing for the same customers, and Paragon can give each one a different role. Whalen described that split while talking about the Naples International Film Festival. The festival's 18th edition, organized by Artis Naples, was scheduled for Oct. 22 through 25 with 59 films from 13 countries, 47 of them premieres, according to the festival's official selections announcement. Paragon Pavilion was set to host its screenings this year.

Whalen said next year's festival could be held at either theater. "Mercato's a little bit higher-end for the film festival people," he said. He also described a different option at The Pavilion. "The Pavilion could be kind of cool next year because I'll be down to six screens, and [they] could just rent the whole place out. It could actually just be the film festival itself without any other outside movies."

That's the clearest description so far of what the new arrangement could look like. Mercato would be the higher-end theater with Lux Box seats in all 11 auditoriums. The Pavilion would be smaller, at six screens, and could be rented whole for an event like the festival.

Here is the short version for the coming months:

• Now through the holidays: The Pavilion runs all 10 of its screens, and Mercato stays dark.
• Dec. 18 or early January: Paragon's target window for opening Mercato, depending on when the Lux Box seats arrive.
• After Mercato opens: The Pavilion is planned to drop to six screens, and the four-screen building becomes simulators, soccer, storage or something else.

Changes like this along the U.S. 41 corridor, such as a theater going dark, a space being re-leased or a shopping center being rearranged, affect what it's like to live nearby. If you'd like to talk through how North Naples is changing around your own home, Amy Nease would be glad to meet with you. Request a private consultation.