Place to stay in Lesotho that's not so bad (5)
I believe the answer is:
hotel
'place to stay' is the definition.
(I've seen this before)
'lesotho that's not so bad' is the wordplay.
'that's not' is a deletion indicator.
'bad' is an anagram indicator.
'lesotho' with 'so' taken out is 'letho'.
'letho' is an anagram of 'HOTEL'.
'in' acts as a link.
(Other definitions for hotel that I've seen before include "Travellers' rest" , "Comms code word for H" , "Building with rooms to stay in" , "Holiday venue" , "the last before coming to India" .)