This unusual business is an inn—for warforged. Warforged do not need to eat, drink, or sleep, but they can still hunger for camaraderie. The Red Hammer is a place for warforged to gather, make new friends, and exchange stories. The Hammer is owned by two warforged, Blue (N female personality warforged fighter 5) and Crucible (N female personality warforged artificer 5). The official story is that Blue bought the Hammer with a cache of gold he found during the Last War, but in truth it was paid for by Merrix d’Cannith. Crucible is one of Merrix’s experimental warforged produced in Sharn, and Merrix also wants to provide the warforged with an outlet for social development. Blue and Crucible are on good terms with Smith, and both support his views as opposed to those of the Lord of Blades.
In addition to companionship, the Hammer is a source for repairs and cosmetic improvement for warforged; costs are equivalent to those of a house of healing. Warforged characters receive a +1 circumstance bonus on any Gather Information or Knowledge (local) checks made in the Red Hammer.
Source: Sharn City of Towers