Sausage served by the Spanish in a fancy hotel (7)
I believe the answer is:
saveloy
'sausage' is the definition.
(saveloy is a kind of sausage)
'the spanish in a fancy hotel' is the wordplay.
'the spanish' becomes 'el' ('the' in Spanish).
'in' is an insertion indicator.
'a fancy hotel' becomes 'savoy' (London hotel).
'el' going inside 'savoy' is 'SAVELOY'.
'served by' acts as a link.
(Other definitions for saveloy that I've seen before include "One using brains originally" , "Highly seasoned pork sausage - love, say (anag)" , "Type of sausage" , "Big sausage" , "Spicy sausage" .)