Club Harlem was founded in 1935 by Leroy "Pop" Williams on the site of a dance hall called Fitzgerald's Auditorium.
Williams was a medical student at University of Pennsylvania when he managed to acquire enough money to buy Fitzgerald's; he left college after becoming the owner of the nightclub.
Williams gave the new nightclub the name of the Manhattan neighborhood because "a lot of black people live there".
The district, known as "Kentucky Avenue and the Curb", had become the home for African Americans in the racially segregated city since the end of World War I. The new nightspot joined other popular black entertainment venues in the district such as Grace's Little Belmont, the Wintergarten, and the Paradise Club.
Along with Harlem's Cotton Club, it was a place for the moneyed set to enjoy an evening of African-American entertainment.
When the club opened in 1935, there were slot machines along with a basketball court on the top floor of the building.
In the 1940s the club became known as Clifton's Club Harlem.

In July 1940, Club Harlem, Little Belmont, the Paradise Club, and the Wonder Bar were targeted in a midnight raid by police officers, accompanied by the newly elected mayor, Tom Taggart, seeking proof of illegal gambling activities.
The police confiscated "three truckloads of gambling paraphernalia" and arrested 32 club owners and employees, then shut down the four clubs.
The next day the clubs were open for business as usual.

In 1947, showman Larry Steele introduced an all-black revue called Smart Affairs to Club Harlem.
The elaborate show,  featuring 40 to 50 acts including comedians, singers, showgirls, chorus lines, and dance numbers, was headquartered at the club through 1970, and also toured throughout the United States and abroad between the 1940s and 1960s, including venues in San Juan, Puerto Rico, Adelaide, Australia, and Toronto, Canada.
The budget for the "Smart Affairs" shows ran as high as US$35,000 per week.
The shows were on a par with Broadway productions.
Smart Affairs productions grossed between $400,000 and $500,000 annually by the early 1960s.
Steele also founded the Sepia Revue and Beige Beauties chorus lines at the club.
Entertainer Lola Falana was discovered by Sammy Davis, Jr. while working in Club Harlem's chorus line.

In 1951 Williams and his brother, Clifton Williams, brought in other partners, including Ben Alten of the Paradise Club.
 By 1954, Williams and Alten owned the Club Harlem and the Paradise Club, operating both under joint ownership.
The club employed 200 people in 1964.
 Its busiest time was during the tourist season from mid June to Labor Day.
Alten described the club's most profitable time as being between 1959 and 1977.
 On the weekends, between 20 and 25 buses from areas in the Northeastern United States arrived, bringing guests who wanted to see the club's shows.

By 1968, Williams began having difficulty booking some African-American entertainers into the venue.
He wrote an open letter to baseball star Jackie Robinson, who had a regular column in the Pittsburgh Courier newspaper.
 The entertainers in question did not want to work at venues catering to African Americans.
After the death of Pop Williams in 1976, Alten's new business partner was businessman Calvin Brock.
Alten and Brock refurbished the club, but business was never as good as it was in the past.
Club Harlem was founded in 1935 by Leroy "Pop" Williams on the site of a dance hall called Fitzgerald's Auditorium. Williams was a medical student at University of Pennsylvania when he managed to acquire enough money to buy Fitzgerald's; he left college after becoming the owner of the nightclub. Williams gave the new nightclub the name of the Manhattan neighborhood because "a lot of black people live there". The district, known as "Kentucky Avenue and the Curb", had become the home for African Americans in the racially segregated city since the end of World War I. The new nightspot joined other popular black entertainment venues in the district such as Grace's Little Belmont, the Wintergarten, and the Paradise Club. Along with Harlem's Cotton Club, it was a place for the moneyed set to enjoy an evening of African-American entertainment. When the club opened in 1935, there were slot machines along with a basketball court on the top floor of the building. In the 1940s the club became known as Clifton's Club Harlem.
In July 1940, Club Harlem, Little Belmont, the Paradise Club, and the Wonder Bar were targeted in a midnight raid by police officers, accompanied by the newly elected mayor, Tom Taggart, seeking proof of illegal gambling activities. The police confiscated "three truckloads of gambling paraphernalia" and arrested 32 club owners and employees, then shut down the four clubs. The next day the clubs were open for business as usual.
In 1947, showman Larry Steele introduced an all-black revue called Smart Affairs to Club Harlem. The elaborate show,  featuring 40 to 50 acts including comedians, singers, showgirls, chorus lines, and dance numbers, was headquartered at the club through 1970, and also toured throughout the United States and abroad between the 1940s and 1960s, including venues in San Juan, Puerto Rico, Adelaide, Australia, and Toronto, Canada. The budget for the "Smart Affairs" shows ran as high as US$35,000 per week. The shows were on a par with Broadway productions. Smart Affairs productions grossed between $400,000 and $500,000 annually by the early 1960s. Steele also founded the Sepia Revue and Beige Beauties chorus lines at the club. Entertainer Lola Falana was discovered by Sammy Davis, Jr. while working in Club Harlem's chorus line.
In 1951 Williams and his brother, Clifton Williams, brought in other partners, including Ben Alten of the Paradise Club.  By 1954, Williams and Alten owned the Club Harlem and the Paradise Club, operating both under joint ownership. The club employed 200 people in 1964.  Its busiest time was during the tourist season from mid June to Labor Day. Alten described the club's most profitable time as being between 1959 and 1977.  On the weekends, between 20 and 25 buses from areas in the Northeastern United States arrived, bringing guests who wanted to see the club's shows.
By 1968, Williams began having difficulty booking some African-American entertainers into the venue. He wrote an open letter to baseball star Jackie Robinson, who had a regular column in the Pittsburgh Courier newspaper.  The entertainers in question did not want to work at venues catering to African Americans. After the death of Pop Williams in 1976, Alten's new business partner was businessman Calvin Brock. Alten and Brock refurbished the club, but business was never as good as it was in the past.
Club Harlem