Part of small hotel, originally upmarket (4)
I believe the answer is:
posh
'upmarket' is the definition.
(I've seen this before)
'part of small hotel originally' is the wordplay.
'originally' suggests taking the first letters.
The first letters of 'part of small hotel' is 'POSH'.
(Other definitions for posh that I've seen before include "'Upper class, accent perhaps (4)'" , "High-class" , "Upper-class - Spice girl" , "Swanky" , "'opulent'" .)