Go round little lake circling hotel (5)
I believe the answer is:
wheel
'go round' is the definition.
(I've seen this before)
'little lake circling hotel' is the wordplay.
'little' becomes 'wee' (similar in meaning).
'lake' becomes 'L' (geographical abbreviation).
'circling' indicates putting letters inside (circling can mean going around or containing).
'hotel' becomes 'h' (phonetic alphabet: alpha, bravo, charlie etc.).
'wee'+'l'='weel'
'weel' enclosing 'h' is 'WHEEL'.
(Other definitions for wheel that I've seen before include "Roller on vehicle" , "Ship's steering device" , "Circular frame on axle" , "Turn in a wide circle" , "Circular structure on axle" .)