Hospet has more accommodation options than Hampi. Hampi is a bit hippie (read nothing about this in all my research preparation, but observed this when I got there!).
Otherwise, there isnt much else Hospet has to offer other than proximity to Hampi and more accommodation options.
As a tourist, my view is that Hospet is a launching pad for visiting the ruins of Hampi, the capital of the Vijayanagar kingdom.
The ruins are just about 20 minutes drive from the hotel / Hospet, and we can spend 2-3 days. I understand Hospet is an important business area as well, but I am not qualified to comment as I went as a tourist.
Good place when you want to visit Hampi Will get an an idea of the village life in the Deccan plateau
One must go to Hospet to see Hampi. All in all, Hospet is a good place to stay for mid-range accomodation.