The space that Shangri-La occupied began as the Three Deuces nightclub, which operated during the '20s and '30s, until a fire in 1940 destroyed the nightclub. The space was briefly the Rhumba Casino, until Shangri-La opened in 1944.
Shangri-La operated for more than 20 years, closing in 1968. After the restaurant closed, the space was converted into a movie theater showing pornographic films. In 1981, the entire block was demolished, and the site is now the Chicago Renaissance Hotel.
Shangri-La's chef, Paul Fong, went on to his own restaurant, called Chef Shangri-La.