There aren't all too many hostels in Greece to begin with, let alone such that would belong to the HI association. Still I found an interesting one on the island of Curfu in a small bay of Agios Gordis, on the west side of the island.

The bay and its sand beach have some resorts and inns, but the thing you really get to see is the pink hostel Corfu Travelers & Backpackers Inn .

It’s taken care off you years now, by the family Grammenou. Magdalena complained there are not so many tourists visiting this year: »There’s less and less European guests, but luckily more and more Americans, Canadians and Australians.«
It’s not among the cheapest hostels, but the rooms are really nice, with AC and most of the rooms have their own toilet and balcony. You can choose a room with a variety from one right up to six beds. There are no age restrictions and the reception is open all the time (just like the bar). You get a self service breakfast at their own restaurant by the sea, that boasts with one of the most beautiful sunsets in the world. The dinner is served in the club Palladium, just between the hostel and the restaurant at the beach. Because it’s also a club, the party can start right after a meal, especially because they have the most reasonable prices for drinks all around. There are theme evenings with plate breaking and toga parties, for some antique fun.
If you wish to stay there for a longer period, you might get a lower price. But they are constantly looking for people, who’d help out, so if you’re prepared to do some chores for your board and food…
They offer you a free shuttle from and to the port or airport, or a reasonable price to Athens and a night at the hostel Aphrodite.

No time to get bored
They offer you many activities, while you’re there. So you can play basketball, valleyball or table tennis, apart from enjoying the water activities at the beach. You can also explore the coastline, go water skiing, diving, on a boat trip… You can also explore the inland of the island with many museums in interesting buildings, or even the palace Achilleion, in the main city of the island. In Benitses is also a museum of clams (www.corfushellmuseum.com). But the main attractions are still the beaches. To the east they are covered with stone, to the west in with sand and there’s also a road going along the west of the island, where you can discover some beaches on your own. Some you can only reach by boat. The most spectacular beach is near the town of Sidara.