I never understood the concept of a ‘Hostel” is that like a free hotel? Who’s funding, maintaining, cleaning and managing it?
I stayed at some while hiking through Europe years ago. Maybe they are subsidized a bit by the government to promote tourism?
Although the owner probably does all right. Cram 8 to 10 people into a regular hotel room and charge them all $10 a night.
https://www.loaferslodge.co.nz/index.html
Looks a lot nice than the ones I stayed in! Appears to be small rooms for one or two people. A bed and some shelves. Bathrooms, living areas, etc. are common use.
They’re not free. They’re very cheap, because they just provide minimal services, people either sleep in bunks in dorms or in tiny 2-person rooms, and get up and leave at the crack of dawn.