Town Square

Town Squares increase happiness in nearby Hovels, Cottages and Manors in a 7 tile radius.

Festivals
Festivals are events that can be thrown in the Town Square for Benefits:

Festivals add + for the kingdom during the Festival.

Higher chance for more Peasants to move in to your kingdom, assuming there is housing space for them.

Notes:

The town square counts as a road connection for houses. So houses don't need to connect to a road to get the happiness benefit if they are adjacent to the town square.