The first 2/3 of the film can be written off as "softcore porn". Plenty of nudity in the film, if that is what you want in your horror by all means see this movie.
The big draw of the film was the supposed horrifying, graphic, and realistic sequences of torture. This the film does not deliver. All in all you get maybe 3 whole scenes of torture. None of them are done realistically(not noticeable unless you know a thing or two about this sorta thing) or in a very gory fashion. You got a guy get "drilled" and his Achilles tendon cut, a guy get mentally tortured(who then kills his torturer), and you have a girl get her face burned. That is about it for the torture scenes.
The story for Hostel is pretty meh, supposedly it is based on true events, but I doubt it.
All in all it is a decent way to kill time. I'll be picking up the Unrated DVD, if anything just to see if it is as graphic as it was hyped to be.