I feel your pain....
I assume you, like I, don't own the property out-right. When other hostels do own their property out-right, Their monthly costings are not as high, so they can play that game and wait it out, hoping that the market slims and then they can re-coup the loss's in the slimmer market.
We're not the best rated, (but rarely out of the 80-89%range) and not the cheapest ( location is best, but being so, rent is higher than most others in city.)
I'm lucky enough to have been the 1st in Bangkok, and have built up quite a fan base - so "Word of mouth" and returning guest has grown so well that a ever growing % of my guest fall under this category which helps greatly.
Working for nothing... Not I.
Good luck with it.