Hotels in capitals of Norway and Sweden (4)
I believe the answer is:
inns
'hotels' is the definition.
(inn is a kind of hotel)
'in capitals of norway and sweden' is the wordplay.
'capitals of' says to take the initial letters.
'and' is a charade indicator (letters next to each other).
'sweden' becomes 's'.
The initial letter of 'norway' is 'n'.
'in'+'n'+'s'='INNS'
(Other definitions for inns that I've seen before include "Roadhouses or courthouses" , "Public houses" , "Old-time hostelries" , "Drinking places (frequented by barristers?)" , "Locals" .)