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.
it's absolutely not correct information. Porbably your contacts has provided you with falseinformation to not attract new competitors. Citizens of EU and US still no need visa up to 90 days - just fill small paper form on arrival and nothing more. But, main thing - YOU NEED KNOW LANGUAGE (Russian or Ukrainian) to communicate with local authorities. You can't conduct business a non-resident withour creating local company (and this company will become your truly problem).
To open hostel in Ukaine you need:
1. Become a fiscal resident (you can still be foreign citizen, but need to get local tax number and get permission to live here - tourists can not conduct business).
2. You need to learn Ukrainian or Russian language.
3. You need to buy an apartment of house forr hostel, because it is realy nosense to rent due to very high price in central areas).
4. You should be ready for lots of control from local authorities, especially from local health authorities.
Yes, Ukraine with it 46.000.000 citizens (most of them travel on budget) and about 20.000.000 tourists per year is a huge opportunity for hostel business, but you need to speak as a local, think as a local and act as a local. Country is safe, country is beautiful and interesting to explore - kind of exotic in the heart of Europe. BUT to conduct business here is very different from Europe, because of different language, different mentality, different business practices.
If someone want to get benefits from hostel in Ukraine it is better to find reliable partner and invest in your joint project to allow your partner to handle all local differences. But don't try to do so by yourself.