what to choose - location or quantity of beds ?

I have t options
to rent 20 beds in the heart of city center or 50 beds outside of city center.

the matter is that your income will not be a big one if you are in the hear of city center , just because any way in the area there are too many hostels
and I would say that the players are good ones.
I mean they have high standard backpackers accommodation , big and very nice hostels.

I have experience of running 20 beds hostel , and I can say
that location is not every thing !
only on high season it means a lot just because a lot of walk ins ....
but for example now , I am not in the city center and I am doing quite well ( much better than some hostels in the center )

so , still I would like to ask the experienced hosteliers , is location so extremely important ?
what makes ou so sure to insist that its indeed extremely important ?

If I am out side of city center
1) I do not need to refuse the big groups when they make a request booking
2 ) I do not need to split the groups - i can take them all my self
3) I obviously make more money
4 ) I can target groups ( all kinds of groups )
do not ask , why I can not efford big 50 beds hostel in the center
the answer is simple - its unbelievably expensive
i shall be unable to pay that rent
but the rnts for small hostels and the hostel which would be far from the center - is financially effordable
thank yu beforehead for the answers