In a way, a place to stay (3)
I believe the answer is:
inn
'a place to stay' is the definition.
(type of pub with rooms for guests)
'in a way' is the wordplay.
'a way' becomes 'n' (Compass direction - North).
'in'+'n'='INN'
(Other definitions for inn that I've seen before include "It provides rest for the traveller" , "Roadhouse" , "Resting place" , "watering hole" , "place to eat, drink and sleep" .)