The most common interpretation of the song's title seems to be a reference to J. R. R. Tolkien's The Hobbit.
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The duo has recorded many cover songs, including "Winter Wonderland" (to the tune of Led Zeppelin's "Misty Mountain Hop"), "Eldorado" (Electric Light Orchestra), "California Dreamin'" (the Mamas & the Papas), "Somebody to Love" (Jefferson Airplane), "After the Lovin'" (Engelbert Humperdinck).