I just finished The Camino last week and I made a decision after the first day that I would only stay in private accomodation. Some people along the way gave me slack and said I was not a real pilgrim but they are not a real pilgrim because they spend all their time criticising others. There is no right or wrong way. I walked all the way and carried my pack on my back.
The reason why I did it was because I have a severe allergy to bed bugs. It can be so bad that I would need the hospital. As money was not an issue for me, I decided to stay only in hotels or small pensiones. Whenever I could, I even stayed in a 3 Star Hotel.
It is so much more comfortable and the privacy you get is so welcome after walking 25 to 30kms a day, day in day out. I never took a rest day because I never needed to. I always had a nice bed to sleep in, private shower and toilet or sometimes I shared but I did not have to put up with snoring, farting, sex in the dormitories, horrible toilets with no seats, showers that did not have hot water, showers that had no doors and finally, bed bugs. I know all of this because others along the way told me what I had missed, saying it with so much pride. Well, I am so glad I didnt have to add all of these to my Camino experience.
I was always rested, could wash my clothes and I was clean and ready for my walk the next day. I would highly recommend it to anyone if money is not an issue. It is not expensive anyway as I paid between 30 e to 60 e per day for accomodation. If you had a friend to share with, you could cut the cost by half. I always found/convinced walkers to share with me. Almost all of them never went back to an albergue afterwards ;-).