Spain does not have a great amount hostels compared to the rest of Europe. The major touristic cities have hostel accommodation, but everywhere else budget accommodation can be found at pensions and hostals.
I like staying in pensions in Spain as you get to see the insides of the apartment buildings that they are in, and if you have been staying in hostels a private room is a welcome luxury. Most pensions can’t be booked online though so you have to look around when you get into town.
I got to Cadiz early in the morning with the intention of staying at the only hostel in town, but I found that it had since closed down after my guide book was published. I walked around for about an hour until I found what must have been the last room available for the day at the Pension Inma in the Old Town of Cadiz.
[View from my pension room]
This pension is in the heart of the old town. From my balcony you can see the top of the Cadiz Cathedral appearing above the narrow streets of Cadiz.