According to the meaning of the sentence the judge denied a motion that will prevent the members to be confined at the hotels. We are not told who is confining them. But please note that the jude can't not this action as per the meaning of this sentence.

You wont pass a bill that will demand all thieves will be hanged, if you are a thief. -- dont take it personally, i just gave this analogy to clarify the meaning of this sentence. So judge is not the doing the act of confining.

I dont see any wrong in the parallelism of the original sentence ----

to allow members of the jury to go home at the end of each day -- this is a noun phrase as "to allow" is an infinitive
instead of -- the usage is correct here as we use "instead of" to compare nouns.
to confine them to a hostel. -- this is also a noun phrase as "to confine" is an infinitive

to confine them to a hotel by xxxx... imparts that some one is doing the action !!!
so the best way to remove this error is to change this into an active one and replace "instead of" with "rather than".


I hope this helps !!!