Bottled up by Arabian Nights hostelry (3)
I believe the answer is:
inn
'hostelry' is the definition.
('inn' can be a synonym of 'hostelry')
I don't understand the remainder of the clue.
Can you help me to learn more?
(Other definitions for inn that I've seen before include "bar" , "It provides rest for the traveller" , "Pub with lodging" , "watering-hole" , "English country pub" .)