Hotel chain needs houses (3)
I believe the answer is:
inn
'hotel' is the definition.
(inn is a kind of hotel)
'chain needs houses' is the wordplay.
'houses' indicates the answer is hidden within the clue (part of the clue houses the answer).
'INN' is hidden in the letters of 'chain needs'.
(Other definitions for inn that I've seen before include "eg the Tabard" , "Small hotel or country pub" , "Drinking-place" , "bar" , "Hostel" .)