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This is information on the instance. For lore, see Hobbit Holes (Lore)

A Hobbit Hole is a small, instanced home. Although these homes are considered instanced, they are not unique instances - with some doing, another player can enter someone else's personal hobbit hole.

Players joining Uthrandir for the first time after August 3rd, 2013 received a free personal Hobbit Hole. Players joining before then need to purchase a Hobbit Hole for 1,000 Prestige before they can use it

A Hobbit Hole provides several chests (as well space to add more chests), a small food garden on the roof, and some basic supplies and gear.