Shabby hotel hides a new drug (7)
I believe the answer is:
ethanol
'drug' is the definition.
(ethanol is a drug)
'shabby hotel hides a new' is the wordplay.
'shabby' indicates an anagram.
'hides' indicates putting letters inside.
'new' becomes 'n' (common abbreviation eg NT for New Testament).
'hotel' is an anagram of 'ethol'.
'a'+'n'='an'
'ethol' going around 'an' is 'ETHANOL'.
(Other definitions for ethanol that I've seen before include "porter uses it" , "Alcohol in wine, beer" , "Kind of alcohol - not hale (anag)" , "Intoxicant in wine, spirits, etc" , "intoxicating stuff" .)