Generally speaking, hostels are economical upgrades to albergues
What is the difference between albergues and hostels? One clear difference is that between hostels and donativo albergues, which are operated by religious organizations or volunteers, or municipal albergues such as the one in Cadavedo, which generally charge fixed prices for their services but work hard to meet the needs of the peregrino community.
Most albergues, however, are operated by commercial owners who hope to make a small profit from the folks who rent a bunk there. There is real overlap between these for-profit albergues and hostels. It’s especially confusing because many hostels’ signs refer to themselves both albergues and hostels. The similarities are significant as many or most hostels, especially the older ones, also use bunkroom style accommodations.
It might be said that some modern hostels are slightly upscale albergues that provide bed linens, are a bit newer or more modern, or provide a bit more in the way of nice touches. The nicest of these modern facilities also compete with pensións and even some hotels.
Rooms
Most hostels use the same bunkroom architecture as albergues. Within that model, however, they do not have very large bunkrooms as some albergues do, so a pilgrim is sharing the room with fewer other people. Some hostels provide private rooms in addition to bunkrooms, making them more like pensións than albergues.
Beds
Most hostel bunkrooms use the same up- and down-bunkbed arrangement as albergues, but some have single beds rather than bunks. Private rooms provide single beds rather than bunks.
Bathrooms and toilet facilities
Most hostels have the same shared bathroom and toilet arrangement as albergues. The smaller bunkrooms, however, mean that these facilities are less, or even much less, crowded than those in albergues. This, however, is highly dependent on which albergue is being compared to which hostel.
Kitchens, Food, and the Like
The kitchen, dining area, and social areas in a hostel, and again this is especially true for the newer ones, are likely to be much larger and better equipped than those in albergues.
Laundry Facilities
The laundry facilities in a hostel, and again this is especially true for the newer ones, will generally have at least a coin operated washer-dryer pair or a very nearby laundromat.