[ Frodo feels like she's humoring an old bachelor to regale her with stories, not that he minds at all. ]

Hobbits were in fact named for where we live, in holes dug into hills. Not a hole of dirt or stone, mind you, hobbit-holes have polished floors and carpets, proper rounded doors and windows too. We call them smials. [ He skips a step. ] We used to live with the Big Folk in the old days but now most of us live in the Shire, hidden from the rest of the world.

[ He smiles her way. ] You are still of the right size to fit comfortably in a smial, and would be most welcome to mine.