Hide in cubbyhole at hermitage (7)
I believe the answer is:
leather
'hide' is the definition.
(an animal hide)
'in cubbyhole at hermitage' is the wordplay.
'in' says the answer is hidden in the clue.
'LEATHER' is hidden in the letters of 'cubbyhole at hermitage'.
(Other definitions for leather that I've seen before include "kid, say" , "Morocco, perhaps" , "Fabric" , "Flog; hide" , "Tanned animal skin" .)