If you are in warmer climates though, a sheet and a bug screen to drape over you may suffice. For warmer climates, you can sleep without a tent. Just go bare and lie on the ground or use a hammock slung between two trees or posts to keep you off of the ground. If you are interested in using a hammock as your main accommodations, check out the Jungle Hammock from Clark Outdoor Products . The main differences between hostels and hotels are that hostels usually have dormitory-style sleeping arrangements and are usually cheaper.
Hotels have private rooms, often provide a bigger bed and are usually cleaner than hostels.
As well, quite often they have private bathrooms. Obviously, the more you pay for a hotel room, the better it will be, but then this is true for hostels as well. These are about the only main differences between the two. If this is the case, then I would take the hotel. It is probably cleaner and safer than a hostel, and may be located in a better part of the city.