Hotels in north and south (4)
I believe the answer is:
inns
'hotels' is the definition.
(inn is a kind of hotel)
'in north and south' is the wordplay.
'north' becomes 'N' (abbreviation).
'and' means one lot of letters go next to another.
'south' becomes 'S' (abbreviation).
'in'+'n'+'s'='INNS'
(Other definitions for inns that I've seen before include "Places of rest and sustenance for travellers" , "Places to stay" , "Locals" , "Old hostelries or pubs" , "Old-time hostelries" .)