Accommodated as royal, delicate fabric placed in room (7)

I believe the answer is:

palaced

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'accommodated as royal' is the definition.
I can't tell whether this defines the answer.

'delicate fabric placed in room' is the wordplay.
'delicate fabric' becomes 'lace' (I've seen this in another clue).
'placed in' is an insertion indicator (I've seen this in other clues).
'room' becomes 'pad' (I can't justify this - if you can you should believe this answer much more).
'lace' placed within 'pad' is 'PALACED'.

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I've seen this clue in The Times.

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