Hi DBD12345. This is definitely due to a bug in iOS 8. The bug is in the iOS 8 code, and it causes your appointments to display the time zone that the subscribed calendar server is set to in addition to the time of the appointment in the time zone you are physically in.
For example, I am in the Pacific Time Zone in California, and my server which is an Office365 Hosted Exchange account, is set to GMT time zone. So when I set up appointments, they display at the correct time on my iDevice calendar, but they also display the GMT time and iOS actually sets them to GMT time. And this only happens on the receiving device...and here's why: when I am creating the appointment on the originator device, it has't yet synced to the server so it doesn't know what the server's time zone is set to. When that same appointment syncs up to the server from the originator, and then down to the receiver iOS device, the iOS code on the receiver device now sees the server's time zone and the receiver device both displays the time zone that the server is set to and also converts the appointment to that time zone.
If your iDevices are physically located in the same time zone that your server is set to (for example say you live in San Francisco and sync to an Exchange server at your corporate office in San Jose that is also set to PST as its time zone), then you have the very same bug embedded in the code on your iOS devices, but you aren't going to SEE the effects of it because the server time zone and your physical time zone are the same. If you go to NYC for a week and start setting up appointments based on local EST in NYC then you are going to see the bug on those (conjecture but I bet this is exactly what will happen).
I believe that the reason you aren't seeing this issue on your Hotmail subscribed calendar is most likely because whatever server that calendar resides on is set to the same time zone that you are physically in when you are creating appointments. If you set up a Google account, which is potentially hosted in a different time zone than your Hotmail server is set to, you are going to see this show up on every appointment you create on an iDevice and then sync through that account to another iDevice. And again, you are not going to see it on the device you create the appointment on...just the other device that receives the appointment through the server.
If you are travelling outside of your current time zone any time soon, it would be awesome if you would create some appointments while your iOS mobile device is in that other time zone, and sync those to one of your other iOS devices (also has to be in the other time zone with you....like if you are travelling with both your iPhone and iPad) and see what happens on your Hotmail account appointments. And please let us know what you see.
Another possible explanation for why you aren't seeing this in a Hotmail subscribed calendar is that the data structure may be different on Hotmail than it is on Exchange, Google etc., and Hotmail may simply not provide the server time zone data to iOS at all.
Finally, other users above in this thread have confirmed that when they use 3rd party calendar apps (i.e. not the iOS 8 Calendar) to sync to their very same existing calendar accounts, the appointments are fine and don't transpose to any other time zones, yet the exact same appointments DO transpose in the native iOS 8 app. Those 3rd party apps don't have the buggy code that reads the server time zone and transposes your appointments to it, and that's why the appointments display correctly in this apps. This absolutely confirms this can only be generated by buggy code built in to iOS 8 and is not a server-side issue.