In Hamburg you don't only have a lot to see during the day, there is also a lot to discover at night! The amusement centre of St. Pauli and the Reeperbahn is known for its bars and pubs, night clubs, table dancing bars, discos, cafés, theatres and erotic shops
Hundreds and hundreds of Bars and clubs are located in a few venues.
Is it better to stay far from competitors or not?
Aggregating business of the same type may attract more people than what, proportionately, a single or few bars or clubs may reach alone. So, no matter of the number competitors: people flows are guaranteed and event target (people who want to have fun) is perfect. You only have to think how to differentiate your offer in more deeper details: disco music or a rock live band? cocktails or beer? karaoke? Pizza, restaurant or kebab?
Just focus on your niche.