Crossword Genius

London hotel: it's a cracker (4)

Ross

I believe the answer is:

ritz

I'm a little stuck... Click here to teach me more about this clue!

'london hotel' is the definition.
'ritz' can be an answer for 'hotel' (I've seen this before). I'm unsure of the 'london' bit.

'it's a cracker' is the wordplay.
I cannot really see how this works, but
'it' could be 't' (abbreviation. e.g. in 'tis) and 't' is present in the answer.
The remaining letters 'riz' is a valid word which might be clued in a way I don't understand.
This explanation may well be incorrect...

Can you help me to learn more?

(Other definitions for ritz that I've seen before include "Puttin' on the -- (song)" , "Luxurious hotel" , "Upmarket hotel" , "top hotel" , "Cesar --, Swiss hotelier" .)

I've seen this clue in The Sun.
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