Innkeeper has house converted into a studio (7)

I believe the answer is:

atelier

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'studio' is the definition.
(atelier is a kind of studio)

I can't explain the rest of the clue.

(Other definitions for atelier that I've seen before include "Artist's studio (French)" , "room for artist" , "Designer's workshop" , "Artist's workroom" , "Artist's workshop, studio" .)

I've seen this clue in The Telegraph.

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