This hat reminds me of one worn by Greek soldier in full dress uniform, look up Evzones and you will see what I mean.
The hat is halfway between a fez and a smoking cap, with a very long tassel.
This is a theatrical hat, one made for use in a theatre production I don't know what production, only it was sold as such on e-bay.
Made of soft red felt, I would put it the head of small Greek curiosity shop owner.
