I just spent 4 nights at 2 CYs in Rochester NY (CY Brighton/CY Penfield) and both had the regular fitted sheet. I understand using a flat sheet, but it slips off after about 10 minutes of being in bed. They also did the bed with a top sheet, followed by a blanket , and another sheet over the blanket.
They did reduce the bath towels from 4 to 3, and the same was true with washcloths and hand towels. Odd number--hedging their bets, I guess. The Brighton hotel is a business hotel, so maybe it works out well. I got 2 and my husband was stuck with one.
I have to say that the beds were some of the most comfortable ones I have ever slept in.