I sense a confusion of the terms hotel and hostel. That 's' separates worlds.

As a young lad (on a tight budget) I stayed in youth hostels in Europe and USA as well. Those (at that time) not only were equipped with shared bathrooms, but also commonly with bunk beds in dormitories (separated by gender -- yeah, such were the times) and usually expected you to take on chores. I enjoyed my stay as it allowed me to go to places I couldn't otherwise afford and meet like-minded young travelers, but it would be impossible to mistake those places for hotels.

Well the line is pretty blurred. But you're right that what used to be called three-star hotels is now primarily a thing of the east, while the west calls them hostels.

Note that those are called hostels. I don't remember seeing shared bathrooms in hotels.

This change of naming happened during the past two decades. You're technically correct, though. Note that you can get a private room in the hostel I linked, that's not universal - and I feel that moves it towards hotel.