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The word 'hostel' is correct and usable in written English.
It is usually used as a noun to refer to a cheap lodging house or a place where travelers or students can stay. For example, "I stayed in a hostel while I was traveling through Europe."
Dictionary
hostel
noun
A commercial overnight lodging place, with dormitory accommodation and shared facilities, especially a youth hostel
Exact(60)
I was happy there, but they told me they were going to transfer me to Hopetown [a women's hostel].
It's an ultra-basic hostel near the Van Gogh museum with 500 beds in dorm rooms but it's hugely popular and super cheap (from €21 a night).
The hostel was purpose-built in the 1970s and there's something of a vintage feel, especially in the shared bathrooms which, while spotless, are decidedly old-fashioned.
One thing to note: at weekends, you usually have to book the whole hostel.
At Kendal - a more conventional hostel, albeit one in a lush Georgian townhouse with narey a floor that didn't slope at some endearingly drunken angle - we had our own room and were given a hearty breakfast the next morning.
At Housesteads, a couple of miles to the west, we wandered about the ruined settlement - marvelling at the luxurious expansiveness and underfloor heating of the commandant's house and the parsimonious lodgings allotted to the footsoldiers - until the fading light drove us back along the wall to the welcoming lights of Grindon hostel.
Five families with a combined total of 14 "children" take over Lonscale Fell hostel in the Lake District for 10 days.
And Tom is able to put a few extra lines of support in place: a home visit, and a place on the waiting list for a hostel run by the charity sector.
The hostel owner greeted me and led me to the building, a mix of comfortable doubles and dorms.
Accommodation is a comfy hostel on Flores Island.
And so whoever turned up for work at a homeless hostel in London, it wasn't Mark Morrison.
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