Learn German: Wir sprechen darüber, dass das Hotel außerhalb des Wohngebiets liegt. - We are talking about the hotel being located outside the residential area.

The preposition außerhalb (outside of) requires the genitive case. Since das Wohngebiet (the residential area) is a neuter noun, its genitive form becomes des Wohngebiets. The -s at the end is the standard ending for masculine and neuter nouns in the genitive case.

Why do we use darüber instead of just saying sprechen über dass?

In German, you cannot put a preposition like über directly in front of a dass clause. Instead, you use a da-compound to point forward to it. Since the phrase is sprechen über (to talk about), we use darüber in the main clause as a placeholder for the entire idea happening in the subordinate clause.

Why does the verb liegt go at the very end of the sentence?

The word dass is a subordinating conjunction, which always kicks the conjugated verb to the end of its clause. Because of this rule, the verb liegt moves from its normal position to the very end.

Why use liegt instead of ist for being located?

While you could technically use ist, German strongly prefers the verb liegen (to lie) to describe the geographical location or placement of buildings, cities, or areas. It translates naturally to is located or is situated in English.