A recent AP story talks about how U.S. hostels often struggle to live up to European counterparts.
"But while independent European hostels often draw the most travelers - popular, most likely, due to the lack of rules and order - their counterparts in the U.S. are often dull or unalluring, according to backpackers. Many are converted motels or houses bearing no resemblance to the hostels' typical dormitory-style accommodations crawling with travelers."
You can read the full story here.