Hostel Location. Please help

Where is best location for a hostel?

We are wanting to open a hostel on the French coast to attract surfers and kite surfers, main problem we have is the cost of property.

So my question is, Do we look in town close to bars and shops or would a place a few km out of town be OK?

Bearing in mind that the majority of people would probably have their own transport if they have come to surf, windsurf or kite surf.

Out of town there is the potential for a camp site and the cost is almost half and the size of the property is double in size.

Any feed back would be very useful and grateful