Popular European student accommodation (5)
I believe the answer is:
hotel
'accommodation' is the definition.
(type of accommodation)
'popular european student' is the wordplay.
'popular' becomes 'hot' (similar in meaning).
'european' becomes 'E' (abbreviation e.g. EU).
'student' becomes 'l' (as in L-plates for learner drivers).
'hot'+'e'+'l'='HOTEL'
(Other definitions for hotel that I've seen before include "pension?" , "Somewhere to stay" , "Letter of the alphabet" , "Holiday venue" , "Place for travellers to stay" .)