Country hotel, so exotic (7)
I believe the answer is:
lesotho
'country' is the definition.
(Lesotho is an example)
'hotel so exotic' is the wordplay.
'exotic' indicates an anagram.
'hotel'+'so'='hotelso'
'hotelso' with letters rearranged gives 'LESOTHO'.
(Other definitions for lesotho that I've seen before include "South African kingdom" , "Southern African country, capital Maseru" , "African territory" , "He loots (anag) -- southern African kingdom" , "Kingdom within South Africa" .)