The
Forsaken Inn was only mentioned once in the LotR.
Here's a map where you can look at the East-West road as it heads out of Bree (which can be looked at as the last outpost of civilization before one gets to Rivendell). The Forsaken Inn would have been along the road, probably just above where the capital 'R' in BREE is.
Hard to say whether the Forsaken Inn was an actual working inn at the time of LotR or mostly in ruin; but, if it were in business, those who might have 'frequented' it may have been a rather dicey lot - brigands, ruffians, and such.
Here's and interesting conception of the
Inn made up for the Lord of the Rings Online Game.
~*~ Pio