A hill in Estoril (3)
I believe the answer is:
tor
'a hill' is the definition.
(tor is a kind of hill)
'in estoril' is the wordplay.
'in' says the answer is hidden in the clue.
'TOR' is hidden in the letters of 'estoril'.
(Other definitions for tor that I've seen before include "Rot on a hill in Devon" , "Rot on a hill in Cornwall" , "A rocky hill in Devon" , "Rocky height, eg Mam" , "Fermenting agent" .)