Trees covered by traditional Christmas decoration? Lots of stars here! (9)
I believe the answer is:
hollywood
'lots of stars here' is the definition.
'trees covered by traditional christmas decoration?' is the wordplay.
'trees' becomes 'wood'.
'covered by' is a charade indicator (letters next to each other) (on top of in a down clue).
'traditional christmas decoration?' becomes 'holly'.
'wood' after 'holly' is 'HOLLYWOOD'.
(Other definitions for hollywood that I've seen before include "Where Frankie goes" , "Tinseltown" , "in LA?" , "Cinematically brash and romantic" , "California suburb" .)