Well, 'Hostel' is indeed based on a true story. The director got the idea from tales he heard about certain hostels in Europe where travelers had some really terrifying encounters. But in the movie, a lot of elements were added to make it more of a horror - thriller, like extreme violence and gore that might not have been exactly as in the real incidents.
The movie 'Hostel' is not based on a true story. It's a work of fiction designed to thrill and scare audiences through creative storytelling rather than real-life incidents.