In the conditions of the Ukrainian economy integration into the world economy, the hotel business, as one of the main components of the tourism industry, should become an important determinant of the country's socio-economic development. The article substantiates the expediency and prospects of the hostel-segment development of the Ukrainian hospitality industry as a means of reducing the shortfall of the economy class hotel fund in tourist and recreational locations, increasing investment activity of the hotel business and promoting of the development domestic and youth tourism. The hostel-segment and its target audience analysis made it possible to determine the main marketing and socio-economic factors of the hostel business development in Ukraine. The current positive trend of increasing the number of hostels is an incentive to develop new hotel ideas and the hotel market as a whole.