Hostels or hotels? Switzerland's quite expensive anyway as its not in the Euro.
I stayed in
City Hostel in Geneva which was nice enough for a hostel, the dorm rooms are small, so we had a private room for the 3 of us. Location is really good aswell, a short walk from the train station.
The hostel we stayed in in Zurich, the
Zurich Youth Hostel (scroll down to the one at the bottom - it won't let me link it directly in here - again was super nice, really modern and clean and had an amazing free breakfast! It was a few minutes walk from the banks of Lake Zurich, but the only disadvantage was that it was a short train ride into the city centre. We met alot of friendly people there aswell, I'd definately recommend it.