The hostel in Stockholm, Sweden with the boat docked in the harbor you could stay on. Those complimentary breafkasts were buffets that made most buffets here in the US look shameful. Plus, they're super healthy too. I could sit there all day and enjoy the hostel and the scenery.
There was also a hostel in Castlesarde on the italian island of Sardenia that was da bomb. It was quiet and quaint, and super cheap for 13 bucks a night for my own room with a separate bathroom and great shower that felt like a waterfall. And it was right off the Mediterranian Sea, so you could get some snorkling gear and stuff and head for the seaside, or you could just walk down to the ocean, perch up on a rock and dive in.
There was another hostel in Italy right on the west coast- it was close to Viareggio, and it was literally on the ocean. Shared hostel rooms, but the balconies were huge and you open the door and walk out, and it's nothing but beach and ocean. 7 bucks. You can't beat that.
There was (last one!) a hostel on Isla Mujeres, the island off Cancun. For about 2 bucks a night, you get a hammock on the roof right under the stars. It's great living.
Koffee