First of all, we should talk about how hell is actually described in the scriptures. In some contexts it is used to describe a place of great torment as in Jonah 2:2 When Jonah tried to flee from the commandment of God. God sent a great fish to swallow Jonah and he spent 3 days being digested inside until he repented:
"And said, I cried by reason of mine affliction unto the Lord, and he heard me; out of the belly of hell cried I, and thou heardest my voice."
Hell is also described as being in a deep place or low place although it is never described as being under or inside the earth exactly. We are never told where it is. Here are some examples:
Job 11: 7 "Canst thou by searching find out God? canst thou find out the Almighty unto perfection? It is as high as heaven; what canst thou do? deeper than hell; what canst thou know?"
Psalm 86:12,13 "I will praise thee, O Lord my God, with all my heart: and I will glorify thy name for evermore. For great is thy mercy toward me: and thou hast delivered my soul from the lowest hell."
Amos 9:2 "Though they dig into hell..."
Isaiah 14:9 "Hell from beneath is moved for thee to meet thee at thy coming..."
You get the idea. So it seems that hell is some sort of pit or low place. Is there fire in hell? Yes. Jesus spoke openly and often about the fires of hell.
Mark 9:43 "And if thy hand offend thee, cut it off: it is better for thee to enter into life maimed, than having two hands to go into hell, into the fire that never shall be quenched:
Mark 9:45 "And if thy foot offend thee, cut it off: it is better for thee to enter halt into life, than having two feet to be cast into hell, into the fire that never shall be quenched:"
Mark 9:47 "And if thine eye offend thee, pluck it out: it is better for thee to enter into the kingdom of God with one eye, than having two eyes to be cast into hell fire:"
In Luke 16 Jesus tells of a parable about a man who dies and awakes in hell, tormented by the flames:
"And there was a certain beggar named Lazarus, which was laid at his gate, full of sores, And desiring to be fed with the crumbs which fell from the rich man's table: moreover the dogs came and licked his sores. And it came to pass, that the beggar died, and was carried by the angels into Abraham's bosom: the rich man also died, and was buried; And in hell he lift up his eyes, being in torments, and seeth Abraham afar off, and Lazarus in his bosom.
And he cried and said, Father Abraham, have mercy on me, and send Lazarus, that he may dip the tip of his finger in water, and cool my tongue; for I am tormented in this flame."
What will happen to the people who reject Jesus Christ and are cast into hell?
In Matthew 25:41 We see:
"Then shall he say also unto them on the left hand, Depart from me, ye cursed, into everlasting fire, prepared for the devil and his angels..."
But there is a place not yet mentioned where a denier of Jesus will end up.
Revelation 20:11 Speaks of a place called the Lake of Fire
And I saw a great white throne, and him that sat on it, from whose face the earth and the heaven fled away; and there was found no place for them. And I saw the dead, small and great, stand before God; and the books were opened: and another book was opened, which is the book of life: and the dead were judged out of those things which were written in the books, according to their works. And the sea gave up the dead which were in it; and death and hell delivered up the dead which were in them: and they were judged every man according to their works. And death and hell were cast into the lake of fire. This is the second death. And whosoever was not found written in the book of life was cast into the lake of fire.
God absolutely did create a hell for His Creation. He offered the free gift of salvation but there will always be those who reject God and His Son Jesus Christ. Accepting the gift of salvation is easy and requires you to do nothing but believe. If there were anything more required, it would be a work to do and not a gift. God did not want anyone coming to heaven based on their own merit. You have to do it His way, by "believing on the LORD Jesus Christ and thou shalt be saved." Acts 16:31