Chalet Martin is a fantastic hostel if you just want to Chillax in the alps. You can cruise down and go to the hot springs/spa as well. This place is a good stop for backpackers who want to relax during their travels.

http://www.gryon.com/

Check this review of the hostel:

Gryon

Chalet Martin Youth Hostel
Get off at the station and follow the sign. Just a couple of minutes walking

The best hostel I ever stayed in. A chalet in a small vilage in Switzerland in the middle of the mountain. With thermal pool and sauna (not working the 2 days I stayed there), log fire, nice kitchen, loundry avaible, video room, ski stuff to rent,clean and comfy rooms and topilets and the greatest view for about 12US$. And there’s a lot of info avaible about other youth hostels, train times and they give you maps with the best tracking routes. A great atmosfere that makes you feel you’re at home. Get a train from Lausanne to Brex(direction Brix) and then get a cograil to Gryon. Eurailpass valid!
—comment by: Luiz Niquet

http://www.eurotrip.com/hostels/switzerland.html