Wikipedia
A hostal is a type of lodging found mostly in Spain and Hispanic America. Hostales tend to be cheaper than hotels. They normally have a bar, restaurant or cafeteria where drinks and food are sold to guests and locals alike.
Accommodations typically include private bedrooms, and sometimes apartments, available for either short or long term rent. Linens and towels are usually provided, unless it is a long term apartment rental in which case the guest is considered a resident and does not receive cleaning and other services. Guests sometimes share a common bathroom, but a number of rooms with en suite bathrooms may also be available.
Hostales are common in Spain and are also found in Mexico, Central and South America and California. They are often family-run, independent businesses, with a strong involvement with the local community.
Hostal-residencias are the same as hostales, but generally without a cafeterÃa or other place where guests can eat.