Pete’s Tavern lays claim to being New York City’s oldest continuously operating bar and restaurant. Established in 1864, it’s become famous for the fact that O. Henry is said to have written the classic short Christmas story “The Gift of the Magi” while dining and drinking here.
That’s why Pete's Tavern, on 18th Street and Irving Place, is also referred to on the sign outside as the place "O. Henry made famous." It turns out that the author lived nearby at 55 Irving Place and was a frequent patron.
At his booth, you can see photos and newspaper stories about him. Many famous people have been to this place, including James Dean, Natalie Portman, John Leguizamo, among others.