The most common and most likely answer to this crossword clue is the 5 letter word FETED
I've seen this crossword clue in The Daily Telegraph
F
E
T
E
D
Buddy explains!

The straight part
We know that "to be honoured" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case to be honoured = feted.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does FETED mean?
FETED verb- (usually in the passive) To celebrate (a person).
- Honoured; celebrated.