In webhosting you install multiple webservers on one host which is most of the time virtual. So you have multiple hosts with multiple webservers on one physical machine.
What you have is one of the virtual hosts on the physical machine. This VM is under your full control and no one else has access to it. You can install software on it, manage user access, control the firewall settings and so on. Which means it is dedicated. So I guess there are more VMs on the physical machine.
If there would be just one VM on one server, I think it would be a waste of resources. Also it would have been simpler just to install the OS directly on the physical machine without a hypervisor inbetween.