As reported, Secrets, a cabaret bar on Cleethorpe Road, Grimsby, had to shut because it was hit by a combination of the smoking ban and national economic turmoil.
Jennifer Parker, owner of Secrets, said it had resulted in less people going out for the night, and with clubbers who did attend having nowhere to go except on the street for a cigarette.
The club was a central point for the lesbian, gay, bisexual and transvestite (LGBT) community.
The new venue, above Bar Icon in the heart of Grimsby is a substantially bigger space. Jennifer will be bar manager at the new location on the corner of Victoria Street and Pasture Street.
It opens tonight.
She said: "The new club will be twice the size of the original Secrets bar.
"The new location is yet to have a name, but it will have all the things which made Secrets such a hit with the LGBT community.
"It has much more room for the dance floor and seating."
She added there will be a range of themed nights, full cabaret and foam parties.
She has joined forces with club and pub owner Paul Weeks, who also owns Bar Babylon and the Submarine pub in Cleethorpes.