where should I start an hostel in Europe?:)

If you don´t want to move too far away I´d say the coast of Croatia has a lot of potential to become a big(ger) backpacker destination.

Can´t say anything about Ireland - never been there except a brief visit to Dublin. I wonder why it´s so popular though. It´s not exactly near anything, it rains 11 months a year and it´s ridiculously expensive.

Maybe Boston would be Irish enough for you? Everybody says it´s a great city, but it has not yet any really decent hostels.

Seriously, though: how much money do you have? Like everything in life, finding a location is not only determined by your preference, but probably more by what you can afford.

croatia is gorgeous and will definately become a tourist mecca - but it is SOOOO seasonal its beyond a joke. ive spent a few months over the past few years down there, picked the brains of a few hostel owners/operators and foudn that most hostels (and even a few towns) down there only operate 3-4 months of the year. if you can make a business work, and grow, with that time limit you're doing pretty well.

The Ukraine.. Spent a few weeks out there and this place is in dire need of hostels.. And now is the time to get in as low cost flights (Wizz air) are just starting and visa requirements for most countries have been relaxed. Border crossings still a bit on the painfully long side but can only get better.. I met an English bloke running a few hostels out there and they were simply 6-8 bunk beds crammed into a residential apartment. Due to the lack of competition he was still charging 10-13 euros a night and turning people away.. He suggested start up costs for him were well under $10K USD..
He had a few hassles with local authorities and said bribes were part of business but tax was minimal..

If you can handle the cold weather and gorgeous women, Ukraine would be a great place to start..

Language would definitely be a barrier in the Ukraine. Being a tourist with no knowledge of Cyrillic was hard enough! They'll need to do a lot of work on tourism info before the Euro in 2012...Currently most of the pamphlets at the airport relate to buying a wife..

I agree on Romania being a good location.Beautiful place..Well maybe not Buch but the countryside was gorgeous during Autumn..

Brasov was described somewhere as the Prague of Romania and I kind of got that feeling. Not a fan of the hollywood style "Brasov" sign that towers over the old town though.
Our hostel in Brasov was pretty average but it was full so the demand is there..

The Ukraine.. Spent a few weeks out there and this place is in dire need of hostels.. And now is the time to get in as low cost flights (Wizz air) are just starting and visa requirements for most countries have been relaxed. Border crossings still a bit on the painfully long side but can only get better.. I met an English bloke running a few hostels out there and they were simply 6-8 bunk beds crammed into a residential apartment. Due to the lack of competition he was still charging 10-13 euros a night and turning people away.. He suggested start up costs for him were well under $10K USD..
He had a few hassles with local authorities and said bribes were part of business but tax was minimal..

If you can handle the cold weather and gorgeous women, Ukraine would be a great place to start..

I used to communicate with a hostels owners in Kiev ( the only city where you can have a hostel ) and I found out that you can make money if you are the OWNER and not a RENTER , in low season you do not make money.
Also , soon there will be a few mega-hostels , big students houses. On Winter time you will probably will be unable to pay the rent.
Also , if a new goverment will make a visa law for the EU and North American tourists , then forget about business !
Actually the law project already ready , the only thing is it has o be confirmed by the parlament.
I do not think that Ukraine is a good country to open a hostel.