Confused about which to use: Hostel vs Guesthouse vs B&B

Greeting to all.. this is my first post here. I have been silently reading and gathering valuable info over the last month in preparation to open my first hostel and have found a wealth of information that I would have otherwise not been able to do collect in this timeframe.. much gratitude to all contributors!!

I decided to rent an already existing property that had been used as a 'geusthouse' with six double rooms and lots of common space, indoors and out, in a very prime location. After studying the market I realised that inorder for the operation to sustain itself year-round, esp during the 5 month low season, it is essential to rent out beds rather than rooms. 

So I have set out to transform some of the rooms into dorms. I am now confused in regards to labeling it as a hostel or not simply because my next door neighbor is a Hostel too. 

I am creating my model so my services differ from theirs and will be discussing with them ways to compliment each other in order to have a healthy relation where we can increase traffic to the region as the main goal. They are open about this approach too and I feel positive about it. 

Can someone provide any feeback I might have missed in regards to branding it a Hostel or otherwise. 

The area and region is saturated with 'guesthouses' and B&Bs while there are less than a handfull of "Hostels". Mine would be the third within a 500 meter area. 

Thanks,

Mo