Fashionable northern lodging-place (3)
I believe the answer is:
inn
'lodging-place' is the definition.
'fashionable northern' is the wordplay.
'fashionable' becomes 'in' ('in' can be similar in meaning to 'fashionable').
'northern' becomes 'n' (abbreviation e.g. N. Ireland).
'in'+'n'='INN'
(Other definitions for inn that I've seen before include "Hostel" , "Local" , "watering-hole" , "bar" , "Swiss river" .)