Inns are places where people meet, drink, eat and stay.
Several Inns were mentioned in the Lord of the Rings, primarily in the Shire region. The Inn of the Prancing Pony was an inn at Bree. The Green Dragon Inn was an inn in Bywater, Shire. The Golden Perch Inn might also have been an inn.
Inns in Middle-earth were seen as great hubs for folk, specifically, Men and Hobbits. Inns were always counted on as being able to sell various alcoholic beverages and good hot meals for weary travellers, which attracted Men, Dwarves, and Hobbits, eager for a pint and a bite. Elves were more interested in the selections of good wine, which were not always served in their best state at Inns.
The Prancing Pony was one of the most detailed Inns in Middle-earth. It was in the town of Bree, and was the most well known Inn around that area. It served as a station for relaying messages between such important figures as Gandalf and Aragorn, during the Quest of the Ring. It also was the meeting place of many Rangers throughout Eriador, and while Frodo Baggins resided there, he indeed met Aragorn, one of the Rangers of the North.
Thus, no town in the lands of Men and Hobbits was complete without an Inn.