The most common and most likely answer to this crossword clue is the 9 letter word STATEROOM
I've seen this crossword clue in The Guardian
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More clues leading to the result STATEROOM
- Old money gets the reverse of low cabin — the best on board
- Formal setting, say, African set up
- Where the Queen entertains most are to run round
- Where Queen may entertain government or set up Order of Merit
- Sat around near small cafe, lacking a place for formal occasions
- Place fit for a 27, say – no good for honeymooner
- Master too excited, getting such accommodation on board
- Modern sculptor’s turning up collecting junk somewhere in palace
- Private cabin, say, with berth put up
Buddy explains!

The straight part
We know that "place for formal occasions" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case place for formal occasions = stateroom.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 STATEROOM mean?
STATEROOM noun- An apartment in a palace or great house for use on ceremonial occasions.
- A superior cabin for a ship's officer or captain.
- A private cabin in a ship or train.