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Taverns are good places for a hero to stay overnight. You will always be greeted with open arms and treated to excellent meals and comfortable beds. Once you have parted with a couple of thousand gold coins of course. Depending on how much gold your hero has then taverns may cost thousands, or tens of gold coins. They are most notable in Beerburgh, where your hero is twice as likely to waste his hard (or easy) earned gold. In a tavern your hero can also buy an(expensive) drink of beer.
It is no secret that heroes love drinking, and that they love wasting money on expensive things so don't be surprised to see your hero blow her hoard on a few pints. Unless you have an aura of abstinence, or your hero has just returned to Godville after completing a quest AND is on low health, then this is unpreventable, so if you have >3000 coins then try and melt them into a gold brick before they get swapped for a beer. You will only find taverns in towns, usually After your hero has sold off her whole inventory and has had a nice heal. Once she is finished in the tavern she will normally continue with her quest, only to return to a town and find yet another tavern.