One requirement for a website is a computer to store and provide it. In order for the site to be transparently avaliable on a 24x7 basis that machine has to be operational and online 24x7. That machine is the host for the website. Providing a service (in the case in question a web service), to any clients that may request a page on that server.
Most people do not have the resources to maintain such a system for their website. As a result, many of those who do have the resources to maintain a presence will offer space on their servers for others to put their own site online without having to worry about persistent connections, backups, and maintaining their own server.
Web hosting, is providing the online drive space, and bandwidth for someone to put a web page, or a complete web site online.
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Poet and seeker of knowledge
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