Teton Village

I have stayed here several times during the summer. Mind you I am not that fussy. The rooms can be on the dark side, but the staff will accommodate you with an extra lamp if necessary so one can read at night. Or just spend reading time in the common room.
I like this place for the price and the location. It's not really like a genuine hostel-linens and room service are included in the room price.
The town itself is getting way too built up w/fancy, smancy overpriced hotels and condos-that I don't like, but what can one do?

They do have room shares for people wanting a real inexpensive stay which is more hostel-like.

Unique Quality: From the balcony in the back you have a whole view of Rendezvous Mt. and the town. Update 08/2012-they built an obnoxious high rise out back so alas the views are not there for the Hostel folks.
From the front of the hotel you can view hot air balloons and para gliders over the field in the early morning.