Certainly! But, souls are immaterial spirits. Only material objects require a physical location. Certainly hell will be a physical location, in order to contain the bodies of the damned, but is it a physical place right now, today?
The problem is that we are in the prison of time. God has no such limitation. He waits for nothing. Looking at it from the limits of time, there are no bodies there “yet.” God sees all who will dwell there, as their souls and there dwelling place are always present to Him.
We are looking through the peephole. God has the bird’s eye view.
But hell is also a place – the Church has
always taught this. I’m afraid that you are being influenced by Modernism if you think that hell is only a state of being. When Satan and the devils fell fiery hell was created for the purpose giving them a new permanent dwelling place(there was no longer a place in heaven for them – yes, even heaven is a real place and not just a state of being). Even in our Creed we say that Jesus descended into hell, of course not the place in hell where the damned are, but to the place of hell next to it. You must read St. Thomas Aquinas and other reputable theologians of old (not newer Modernist theologians) because you seem to still doubt that hell is an actual place, which it is. God bless you.
Here is what I found in the Catholic Encyclopedia:
Where is hell? Some were of opinion that hell is everywhere, that the damned are at liberty to roam about in the entire universe, but that they carry their punishment with them. The adherents of this doctrine were called Ubiquists, or Ubiquitarians; among them were, e.g., Johann Brenz, a Swabian, a Protestant theologian of the sixteenth century. However, that opinion is universally and deservedly rejected; for it is more in keeping with their state of punishment that the damned be limited in their movements and confined to a definite place. Moreover, if hell is a real fire, it cannot be everywhere, especially after the consummation of the world, when heaven and earth shall have been made anew. As to its locality all kinds of conjectures have been made; it has been suggested that hell is situated on some far island of the sea, or at the two poles of the earth; Swinden, an Englishman of the eighteenth century, fancied it was in the sun; some assigned it to the moon, others to Mars; others placed it beyond the confines of the universe [Wiest, “Instit. theol.”, VI (1789), 869]. The Bible seems to indicate that hell is within the earth, for it describes hell as an abyss to which the wicked descend. We even read of the earth opening and of the wicked sinking down into hell (Numbers 16:31 sqq.; Psalm 54:16; Isaiah 5:14; Ezekiel 26:20; Philippians 2:10, etc.). Is this merely a metaphor to illustrate the state of separation from God? Although God is omnipresent, He is said to dwell in heaven, because the light and grandeur of the stars and the firmament are the brightest manifestations of His infinite splendour. But the damned are utterly estranged from God; hence their abode is said to be as remote as possible from his dwelling, far from heaven above and its light, and consequently hidden away in the dark abysses of the earth. However, no cogent reason has been advanced for accepting a metaphorical interpretation in preference to the most natural meaning of the words of Scripture. Hence theologians generally accept the opinion that hell is really within the earth. The Church has decided nothing on this subject; hence we may say hell is a definite place; but where it is, we do not know. St. Chrysostom reminds us: “We must not ask where hell is, but how we are to escape it” (In Rom., hom. xxxi, n. 5, in P.G., LX, 674). St. Augustine says: “It is my opinion that the nature of hell-fire and the location of hell are known to no man unless the Holy Ghost made it known to him by a special revelation”, (City of God XX.16). Elsewhere he expresses the opinion that hell is under the earth (Retract., II, xxiv, n. 2 in P.L., XXXII, 640). St. Gregory the Great wrote: “I do not dare to decide this question. Some thought hell is somewhere on earth; others believe it is under the earth” (Dial., IV, xlii, in P.L., LXXVII, 400; cf. Patuzzi, “De sede inferni”, 1763; Gretser, “De subterraneis animarum receptaculis”, 1595).