In simple words, an albergue is a hostel for pilgrims. If you're familiar with hostels it won't be difficult to understand the whole albergue thing. A standard albergue has one or several dormitory rooms with bunk beds (few have normal beds), a shared ablution complex, a kitchen, and a common area.

While both offer budget-friendly dormitory housing, an albergue is a specialized type of hostel found almost exclusively along the Camino de Santiago pilgrimage routes in Spain and Portugal. The primary difference is the "pilgrim focus": many albergues (especially "municipal" or "parochial" ones) require guests to carry a Credencial (Pilgrim Passport) and only allow one-night stays to accommodate those walking the trail. Albergues are often simpler, sometimes providing only a bunk and basic shower for €10–€20, and they typically have strict curfews (10:00 PM) and early "lights out" rules. A standard hostel, by contrast, is a commercial business open to any traveler, allowing multiple-night stays and often featuring more social amenities like bars, organized pub crawls, and 24-hour access. In short, all albergues are hostels, but not all hostels are albergues.