Hotel in capital of Norway (3)
I believe the answer is:
inn
'hotel' is the definition.
(inn is a kind of hotel)
'in capital of norway' is the wordplay.
'capital of' says to take the initial letters.
The first letter of 'norway' is 'n'.
'in'+'n'='INN'
(Other definitions for inn that I've seen before include "pubs?" , "Hotel or public house" , "Resting place" , "Gray's, Lincoln's" , "Drinking-place" .)