With the hybrid, it will cool the room that is located in. But if this is the garage/attic, that won't be a problem.
If your garage is slightly warm, it will still be able to extract heat from the air, just as your house heat pump does.
I have mine vented to the outside and draw air from the outside, I will alter that for the Summer to help with the A/C mode of my heat pump system. I haven't got around to modifying my utility room yet since I had the propane equipment taken out.
It will also take moisture out of the air, as its a mini-heat pump.
In my house for heat I use a heat pump, so I would still be saving money even if the water heater was in the house.