The Odyssey Book 11 and 12: Where is Odysseys when he is telling the tale of his journey? to Hades? Who is he speaking to and what are they doing at the time?

Odysseus is telling the story of his adventures to Alkinoos, the leader of the Phaiakians. I believe he narrates much of it to a room of people, not just the ruler. They are relaxing and listening to his tale. In a way, he mirrors Homer, who would have been singing the poem to people after dinner as entertainment, just as Odysseus is telling the story of Hades and more to the relaxing Phaikians.