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According to an early news report in the game, it is located in a part of Orre known as Eclo Canyon. At the start of the game, the base was partly destroyed by Wes in a series of explosions. These ruin the large Snag Machine and dilapidate much of the base. Gonzap's office seems to be the least affected area. Later in the game, some remnants of both Cipher and Team Snagem, as well some other trainers, gather at the Hideout. A Shadow Smeargle and a Shadow Ursaring can be snagged here after defeating the boss of Cipher.
In Pokémon XD: Gale of Darkness, Michael goes here to retrieve his Snag Machine from Gonzap, who has had three Snagem Goons who steal it. The hideout is still damaged from the explosions caused by Wes several years before.