Palace lost 2-0 at home as Callum Wilson and Joelinton struck for the Toon.
Hodgson said, "All defeats hurt and this one did as we didn't play well. I didn't think we were going to lose. I didn't think we would win it either. So to lose it is a bitter blow. Congratulations to Newcastle on winning it.
"I would credit the whole Newcastle team. The keeper played his part but I think it is too simplistic to say we didn't win because of their goalkeeper. We didn't create enough.
"I was confident we would play well tonight. We will do our best but to make those predictions (about winning next week) would be foolish. I thought we played better at Burnley than we did tonight. We will have to come over this, deal with it, analyse it and play the kind of football we are capable of playing when we face West Brom next Sunday."
He added: "This is not a performance we can be particularly proud of. We have to accept that if we want to get points on the board then we need to do better."