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What's the difference?
There are three names for hotel-like accommodation in large cities in Spain: hotel, hostal and pension. It is important not to confuse a hostel with a hostal; a hostel offers backpacker-type accommodation with shared rooms, whereas a hostal is very similar to a guest house and is generally cheaper than a hotel.
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There are many types of tourist accommodation, ranging from hotels, pensions and rented villas, to camping and even monasteries.
"7% VAT is not included" is a common trick for mid-range guesthouses and hotels: always check the small print when you choose your place to stay. VAT is IVA in Spanish.
