The first concept certainly has a stronger presence in my mind. It's a bit more rugged.. Which would align with the context - a backpackers hotel. I would however be a little concerned about the legibility of the text at smaller scales.
Does it work at an inch?
How are you going to apply it across their stationary and website? (Even if you're not creating these for them, or if they don't want them right now, it needs future-proofing).
One concern would be it looking too much like a bar, or a restaurant? Maybe it needs something a little more defining to highlight the fact that it's a hotel.. The feathers could perhaps from a house - or a tent of some kind?
There is something elegant that I love about the second concept.. But depends on the audience of the hotel - are these backpackers on a shoestring budget or middle class holiday makers? I think this would be less likely to appeal to those on a budget.
Also concerns about the level of detail. Perhaps you could create the character as a pattern itself, rather than patterns within the character?
Hope that helps.