Hi Miss_I - welcome to WebmasterWorld :)
We have discussed local hosting many times and it depends on the industry, competition and you technical skills wether you want to host locally or not. Personally I'd go one host on place, use Google Webmaster Tools to set your preferred country/language and make sure you have local language on your local domains. Having language and local ccTLD, you should be ok for local searches.
You can use the Google Adwords keyword suggestion tool in all languages to find relevante keywords.
Good luck :)