The Sip-N-Dip Tiki Lounge has been part of the O'Haire Motor Inn since 1962. The main attraction is the mermaid show -- there are windows in the bar that look into the hotel's pool, and mermaids put on a show on weekends. This mermaid show and the push towards being more "tiki" began in 1995 as the Tiki Revival was just beginning to ramp up. Another attraction is "Piano Pat" Sponheim, who has been playing piano five nights a week (Tuesday through Saturday) since 1962.

When actress Daryl Hannah, who famously played a mermaid in the movie Splash, was filming in the area, she made a special visit to the bar, even donning a mermaid suit and jumping in the pool to give a show.

In 2003, the bar was featured on a list of the top 10 bars in the world in GQ Magazine. In 2004, a crack in one of the glass pool walls threatened the bar; the glass walls have been replaced with new triple-pane glass.

The bar's ceiling is lined with bamboo, and there are beachcomber-inspired fish trap lamps.

The bar does especially well on weekends during the mermaid show, when patrons line up to get into the small 72-person capacity bar.