See Dad chat about hotel returns in the capital (7)
I believe the answer is:
baghdad
'returns in the capital' is the definition.
'Baghdad' can be an answer for 'capital' (capital of Iraq). I'm not certain of the 'returns in the' bit.
'see dad chat about hotel' is the wordplay.
'see dad chat' becomes 'bagdad' (I can't explain this - if you can you should give a lot more credence to this answer).
'about' indicates putting letters inside.
'hotel' becomes 'h' (phonetic alphabet).
'bagdad' going around 'h' is 'BAGHDAD'.
Can you help me to learn more?
(Other definitions for baghdad that I've seen before include "city abroad" , "capital abroad" , "Capital of Iraq" , "Iraqi capital" .)