Grand residence, sumptuous hotel being demolished (7)
I believe the answer is:
homeric
'grand' is the definition.
'residence sumptuous hotel being demolished' is the wordplay.
'residence' becomes 'home' (home is a kind of residence**).
'sumptuous' becomes 'rich' ('rich' can be similar in meaning to 'sumptuous').
'hotel' becomes 'h' (phonetic alphabet: alpha, bravo, charlie etc.).
'being demolished' is a deletion indicator.
'rich' with 'h' removed is 'ric'.
'home'+'ric'='HOMERIC'
(Other definitions for homeric that I've seen before include "Relating to Iliad and Odyssey" , "of old poet" , "In style of, eg, the Iliad" , "Like unrestrained laughter" , "Large-scale" .)