Very popular place to stay offering reduction of 40% (3)
I believe the answer is:
hot
'very popular' is the definition.
(I've seen this before)
I don't understand how the remainder of the clue works.
Can you help me to learn more?
(Other definitions for hot that I've seen before include "Stolen - sought after" , "Having a high temperature" , "recently stolen" , "Sultry in psychotic way" , "SECOND PART OF 11" .)