Taxi service housed by a grand European hotel (7)

I believe the answer is:

auberge

I'm a little stuck... Click here to teach me more about this clue!

'hotel' is the definition.
(I've seen this before)

'taxi service housed by a grand european' is the wordplay.
'taxi service' becomes 'uber' (I can't explain this - if you can you should believe this answer much more).
'housed by' is an insertion indicator.
'a grand' becomes 'ag' (I've seen this in other clues).
'european' becomes 'e' (abbreviation e.g. EU).
'uber' placed within 'ag' is 'auberg'.
'auberg'+'e'='AUBERGE'

Can you help me to learn more?

(Other definitions for auberge that I've seen before include "Local" , "Continental inn" , "(French) inn or tavern" , "Hotel" , "restaurant" .)

I've seen this clue in The Telegraph.

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