Fancy top hotel in genius refurbishment and alignment of living space (4,4)
I believe the answer is:
feng shui
'alignment of living space' is the definition.
'fancy top hotel in genius refurbishment' is the wordplay.
'top' suggests taking the first letters.
'hotel' becomes 'h' (phonetic alphabet: alpha, bravo, charlie etc.).
'in' means one lot of letters goes inside another.
'refurbishment' is an anagram indicator (I've seen this in other clues).
The first letter of 'fancy' is 'f'.
'genius' anagrammed gives 'engsui'.
'h' placed into 'engsui' is 'engshui'.
'f'+'engshui'='FENG SHUI'
'and' acts as a link.
(Other definitions for feng shui that I've seen before include "Chinese energy system for optimising buildings" , "Chinese values" , "Chinese system of environmental energies" , "Chinese system for siting and designing buildings" , "guide to oriental building" .)