Establishment with a house phone (5)

I believe the answer is:
hotel
'establishment' is the definition.
The answer and definition can be both man-made objects as well as being singular nouns.
Perhaps they are linked in a way I don't understand?
'with a house phone' is the wordplay.
'with' says to put letters next to each other.
'a house' becomes 'ho' (abbreviation for house).
'phone' becomes 'tel' (short for telephone).
'ho' next to 'tel' is 'HOTEL'.
Can you help me to learn more?
(Other definitions for hotel that I've seen before include "A modern inn" , "Eg, Savoy, Ritz" , "Lodging house - code for "H"" , "Large guest house" , "guest house for a song before 8 [STATE] ..." .)
