Yes it does. My O/H has just come back from there from a holiday with her daughters and she used her BT Mobile for Roam Like Home with no problems.
Rhodes is part of Greece but it's also geographically close to Turkey meaning you could find yourself picking up a Turkish network which are chargable (your phone would send you a Welcome to Turkey text).
When you get there (or if you're already there), I'd recommend doing a manual network search and picking either COSMOTE or NOVA (formerly WIND). That way your phone won't jump from network to network meaning there's no risk of your phone latching onto a Turkish network and charging you.