My inner child would LOVE to allow dogs but other than the fact that it is against health code here legally I feel like it would be too much of a hassle.
My concerns would be:
Extra clean up for house cleaners and cost of damages. The shed fur or dog smell left behind especially if they let them sleep in the bed with them.
I'm sure some people would just let you charge them instead of actually cleaning up after their dog which would just again be extra work for the cleaners.
It would also be a huge hassle if the dog chewed furniture.
You can never know if anyone is allergic/has a fear of the animal who is also staying at the hostel.
The legal issues if someone were to be bit/ attacked.
I think I'm just used to people doing what they want and not care about the rules. To be honest, it's bothersome enough when people bring their kids along! I don't want to imagine what hell would break loose with a dog. The amount of times I've found used nappies just wrapped up in the laundry or hidden on the top shelf of a closet blows my mind. They aren't Easter eggs people!