Passionate about entertaining American city (7)
I believe the answer is:
houston
'city' is the definition.
(Houston is an example)
'passionate about entertaining american' is the wordplay.
I cannot quite understand how this works, but
'about' could be 'on' (as in a book 'on' a certain topic) and 'on' is found within the answer.
'american' could be 'us' (abbreviation for United States) and 'us' is found within the answer.
'passionate' could be 'hot' (similar in meaning) and 'hot' is located in the leftover letters.
This accounts for all the letters.
This explanation may well be incorrect...
Can you help me to learn more?
(Other definitions for houston that I've seen before include "American place" , "Texas oil port" , "American city" , "Whitney ---, US singer" , "Texas home of NASA Mission Control" .)