What type of hostel would you develop here??

Hi, I'm planning on opening a hostel in Montevideo, Uruguay, South America! The city has around 1.5 million inhabitants and is very close to Buenos Aires, a massive backpacker destination. The city already counts with more or less 8 hostels, but many of them are crapp!! Also, Montevideo is close (as the distances inside the country are short) to many points of interests, such as Colonia, Punta del Este and more.
My question is, what kind of hostel would you develop in this kind of city?? What size? how many dorms? do you recommend a bar?
It's not a great city as Rome can be, but it isn't a little town. I would like to hear the opinion of experienced hostel managers or employees, or whoever wants to make a comment. This will help me start focusing better on many aspects of the project.
Thank you!!

Tano:
Whatever you do...focus on day trips to Colonia, Punta, Punta del Diablo and Cabo Polonio. If you can keep them and take them to the basic places in your country, that is the best!
Also...focus on mate, cold cuts, fairs, and the lots of unique things URUGUAY has. As an Argentine, I understand the variuos comparissons you might expect from American and European travallers regarding the ressemblance to Argentina.

Your beaches are 200% better than Argentine. Anything homemade is better, Anything baked is 100% better, etc.

Highlight the difference and take them out as additional services.
Regarding the hostel CLEANESS is vital, Also heating and AC, The kitchen is appreciated to be fully equiped (microwave, coffemaker, toaster, lots of pots and pans). Finally, teach your staff to be a part of the hostel, in spanish "que se pongan la camiseta", offer help, print maps, give suggestions, be active in the well being of each pax.

Wel I hope I helped a bit. Good Luck!
I´m in Palermo, BA.

Luciana

I stayed at quite a nice hostel in Montevideo...Red Hostel I think..
Montevideo isn't the most exiting city, but it does have a great name(which is sometimes all a backpacker needs to go somewhere)...and its easy to get to from BA...I would imagine you want to make your hostel a destination...so people in BA will recommend it to each other...

Thanks everybody for the answers, specially Kapake, you might be the one that most know Montevideo and it's potential! Of course, I don't want and won't compete with Buenos Aires, but as so many backpackers travel to BA, many, or at least some would be interested in traveling to Uruguay, and possibly to Montevideo. I don't know you, but I like to travel to most places I can when I'm in a specific region of the world, don't matter if I don't have many references about the place. So definitely, I know I won't compete with BA, but I could use it's potential and backpacker traffic to attract people to Montevideo, specially to my hostel of course.
The day trips you mentioned are really interesting and I'll definitely have them on mind, I know people loves those places.
Also, many people might think Montevideo is boring or doesn't have many things to do, but if someone local, who knows the city and everything that has to offer, I ensure you that you will love it, or at least have a good impression and a good time. I think that impressions depends mostly on how well advised you are, and who recommends you the places. Thanks again everybody, all posts were really helpful.

Ok Fountainrunner, i'll let you know when I open the hostel, and don't worry, it's gonna be the best!
Kapake, I'll really appreciate if you could help me find some information abiut the backpacker traffic in BA, as well as the occupation average in different times of the year. I know I have to take advantage of being so close to BA, I've been talking to myh partner and we already have some ideas, we can make a deal with buquebus in which they would offer the ferry and the hostel as a package, and things like that, we have some contacts at buquebus!
Any info you can give me would be really helpful...we are starting the business plan and the part of gathering info and the market research with numbers is the hardest one.
Thanks!!