A guest house is a private house in a rural area, a small town or near the coast. In Dagestan, guest houses in the national style are very developed with cozy and comfortable rooms, interesting old household items, utensils, national clothes, works of masters of folk crafts.
The hostel is a small hostel for budget travelers. If you are strapped for money, but want to see the world, then the hostel is a great place for a safe overnight stay. Usually it looks like this: rooms with bunk beds, a TV, a place to charge gadgets, WI-FI and amenities in the corridor.