It means to spend time with friit meansends or certain group of people at a certain place. eg-I like to hang out with my friends at the cafe`

To "hang out" is a colloquial term that has close meaning to "visit" or "meet" with someone. It's another way of asking "would you like to spend time together?". "Do you want to hang out at the park?" "Do you want to hang out? We could go to see a movie!"