TENS of thousands of pounds will safely secure the cream of high society a luxury penthouse flat, stately home or five-star hotel when Royal Ascot comes to York.

But now there's an odds-on clear favourite in the race to find the cheapest place to stay.

York's official Youth Hostel is opening its dorms and dusting down bunk beds to racegoers... for the princely sum of only £18 per night.

Tim Butcher, joint manager at the YHA York hostel, Clifton, today said budget bed and breakfast prices there would not rise during the five-day Royal festival, when an estimated 50,000 punters a day will flock to the city in June.

His comments came after the Evening Press revealed how a private youth hotel in York, also offering accommodation for backpackers, families and school parties, said it was hiking prices to £50 a night during Ascot.

But Mr Butcher, 35, said a large proportion of regulars at his 150-bed site were school groups on educational trips. He said: "When we saw Royal Ascot was happening during term time we made the decision not to put prices up and cash in.

"Our mission statement as a charity is to provide low cost accommodation for people visiting the city. So it would be against our charitable aims if we decided to hike prices up."

Mr Butcher, who runs the hostel with co-manager Aukje Noorman, said: "We welcome anybody who wants to come and stay with us - we are happy to take bookings from anybody.

"We will not turn racegoers away - if they want to pick up a bargain we are here. If the Queen and Prince Philip choose to stay at YHA York they would save even more on their Royal expenses."

One night's bed and breakfast at the three-star rated hostel for an adult is currently £18, with under-18s charged £13.

The large Victorian house, at Water End, boasts spacious grounds and easy access to the city centre. The Youth Hostels Association has more than 200 hostels across England and Wales.

Charles Stuart, of the private York Youth Hotel where Ascot prices will rise to £50 a night, said he thought the YHA was a wonderful organisation.

But he said his business was operating with much tighter margins than the international YHA.

He said Ascot week was an opportunity for him to make a normal profit rather than a small one.

Updated: 08:23 Tuesday, September 21, 2004