There are a couple of things that jump out at me:
170 F (77 C) - This is overkill for ground beef. The USDA guidelines recommend 160 F (71 C).
Venting holes - This is unnecessary. There is no need to "vent" a hamburger. What you're doing is creating holes for the juices to flow out of and get vaporized on the pan. This is likely a significant source of the smoking you describe. Keep those juices in!
I'm not familiar with electric stoves, so I'm not sure if 6/8 is too hot or not, but it might be. I cook my burgers on a gas stove at medium-high flame and generally do 5 mins per side for a medium burger (I grind my own beef). My burgers are about an 3/4" - 1" thick too. So you might have your stove too hot, try turning it down a smidge.
Update
I want to clarify regarding the "blood" you are worried about. It's a common misconception that the red liquid packaged with beef is blood. It's not. Beef is drained of virtually all blood when it is slaughtered. Beef is 75% water, so the liquid you see is mostly water and the pink hue comes from the iron & oxygen binding protein myoglobin which exists in muscle tissue. When cooking, the juices you are releasing are taking a lot of the flavor with them. This liquid is a combination of liquified fat, water, and proteins. You can verify this at the USDA site for beef.
Another common misconception is that a completely grey-brown interior indicates well done. According to the USDA, 25% of burgers turn brown before being fully cooked; this can happen as low as 135 F (57 C). The inverse is true as well, some beef can be cooked to the USDA recommended safe temperature 160 F (71 C) and still retain some light pinkness in the center.
If your concern is merely safety, cooking the beef to an interior temperature of 160 F is sufficient, regardless of it's hue. If you you're cooking it beyond that just because you don't like the sight of pink meat, well you're overcooking your burgers and doing yourself a bit of injustice. :)
I don't endorse beef in the microwave, but that said, the best possible way to cook it is going to be on one of the microwave plates that raise your food off the plate. (the ones that look like the inside of a george foreman grill) You are going to have to play with your power settings a bit to achieve a optimium patty. In mine, it's 2:30 at 40 percent power and 1:30 at full power but depending on wattage, your particular times are going to vary.
The trick to having an edible patty come out of the microwave is use low power to achieve the desired temp and then hit it at full power to get the outside done. It will always produce a slimy-er patty than cooking it on a stovetop or in an oven. Make sure that you cover the patty during cooking as it is going to spatter like crazy. You don't want to clean that mess up.
If you have access to a toaster oven, you can cook a patty in that in about 15 minutes and you will have a much closer to delicious product.
Best Answer
In short, kind of, but only with the proper accessories/equipment. You'll never match a grill or griddle but you can get surprisingly close.
As was mentioned in other answers, what you're going to lose most is the sear.
I was given a Corningware Microwave Browning Dish a while back and found that it actually works pretty well when you're stuck with only a microwave. They were apparently popular when microwaves were new and exciting, but people didn't know how to use them well and they faded into oblivion. I've seen them on sale on eBay so you might be able to find a good price there if you're going to be stuck in the hostel for a while.
The basic idea is, there's a special kind of microwave-safe metal inside the base of the casserole. You heat this with nothing on it for 3 minutes to get it nice and hot. When you drop the patty on, it immediately sizzles. You use the microwave function to heat the inside, while the hot surface sears the outside. Although you're likely not going to get a perfect burger, you do get a real nice Maillard reaction on the outside of both sides (assuming you flip halfway) and if you play with the cooking time and power (to reduce that rubbery texture from overcooking), you can get something that's (in my opinion) a good 75%-quality burger compared to a griddle or grill. I actually burned pork chops on it once, that's how hot the surface gets.
As a bonus, similar to a nice Boos block, there is a gutter around the outside and the plate is slightly concave, so the juices run off into the reservoir and the burger won't sit in fat during the cooking.
After reading the other answers (ElendilTheTall's specifically), I would think if you combined the steaming method to cook the burgers, with the microwave browning dish to sear, you could probably get a really good result. If the burgers were fully cooked via steaming you could probably heat the dish and sear the burgers without even turning the microwave on (except to heat the casserole initially).
I believe Alton Brown did an episode where he talked about a specific type of brick that you can find at most hardware stores which is microwave-safe for the same searing purpose, but I can't find that info right now.