The short answer is yes. It can affect user experience, as well as SEO and overall website security. Because web hosting is transferring your website file to a hosting server, the closer you are to the server your site is hosted on, the better.
Server locations also have an impact on the speed of your site when users land on it and navigate through it. To avoid latency issues, we would always recommend committing to a web hosting provider that has server locations close to where you're target audience is based.