Hotel on Hebridean island raised capital (5)
I believe the answer is:
hanoi
'capital' is the definition.
(capital of Vietnam)
'hotel on hebridean island raised' is the wordplay.
'hotel' becomes 'h' (phonetic alphabet).
'on' means one lot of letters go next to another (in a down clue, letters appear on others).
'hebridean island' becomes 'iona' (island of the Hebrides).
'raised' says the letters should be written in reverse (going up in a down clue).
'iona' backwards is 'anoi'.
'h'+'anoi'='HANOI'
(Other definitions for hanoi that I've seen before include "Asian city" , "capital out East" , "Asian capital on the Red River" , "Vietnamese city" , "Vietnamese capital" .)