He lost out on accommodation (6)
I believe the answer is:
hostel
'accommodation' is the definition.
(I've seen this before)
'he lost out' is the wordplay.
'out' indicates an anagram (out can mean wrong or inaccurate).
'he'+'lost'='helost'
'helost' is an anagram of 'HOSTEL'.
'on' acts as a link.
(Other definitions for hostel that I've seen before include "Cheap lodging house for hikers" , "Youth accommodation" , "Inexpensive accommodation for helots" , "Lodging-house for young travellers, students etc" , "Inn" .)