Elegant hotel in Welsh town (5)
I believe the answer is:
neath
'welsh town' is the definition.
(I've seen this before)
'elegant hotel' is the wordplay.
'elegant' becomes 'neat' ('neat' can be similar in meaning to 'elegant').
'hotel' becomes 'h' (phonetic alphabet: alpha, bravo, charlie etc.).
'neat'+'h'='NEATH'
'in' is the link.
(Other definitions for neath that I've seen before include "Welsh team" , "Welsh rugby club" , "Town near Swansea" , "not on top" , "town in South Wales" .)