SEO hosting is the process of having multiple web sites running on different IP addresses that also do not share the same physical network and are owned by different people. SEO hosting is designed to optimize your online exposure by using traditional and non-traditional SEO methods. This can include generating various original web page contents, multiple websites on different IPs, or any other SEO scheme.
The philosophy behind SEO hosting is that having an attractive website is not enough. If no one knows about it, you will not receive any traffic. Thus having the best website with no traffic is like the old proverb, "If a tree falls in the forest and no one hears it, does it make a sound?"