Camp originally ghastly, useless looking after guests (5)
I believe the answer is:
gulag
'camp' is the definition.
(gulag is a kind of camp)
'originally ghastly useless looking after guests' is the wordplay.
'originally' suggests taking the first letters.
The initial letters of 'ghastly useless looking after guests' is 'GULAG'.
(Other definitions for gulag that I've seen before include "Soviet prison camps" , "USSR system of labour camps" , "place of detention" , "Soviet detention camp" , "Harsh labour camp" .)