The Ice Princess is a combination bar/brothel/inn in Ravenstown, run by Dandy Leonaller. The ground floor has tables for guests, the upper floor has two large bedrooms where prostitutes service the patrons, and the basement has a laundry. Dandy is always on the lookout for beautiful women to entertain his guests. Notable guests include Lefur Beltiamen, Donan Davis, and Lorico Wetter, a trio of treasure hunters.
WARNING Spoilers follow.
The Princess and Pia come across the Ice Princess during their time in Ravenstower for the Pia is Missing quest. If the Princess is attempting to romance Pia, spending the night with her in the upstairs bedroom is key. The Princess can accept Dandy's offer of employment, although Pia will be rather distressed if she makes good on it.
Note: In Part One v1.40 and earlier, Terek Weminster, Baron Ravenstower's right hand man, occupies the basement with several guards and all of Dandy's prostitutes. It was the location of the final showdown between the Baron and Terek.