Dozens of youth hostels have been granted 24-hour licences to sell alcohol, despite protests from local residents who fear that their peace is about to be shattered.

The Youth Hostel Association has taken advantage of the new liberal licensing laws to get permission to sell alcohol around the clock in 118 of its hostels in some of the most scenic parts of England and Wales. It is trying to diversify its clientele away from early-to-bed hikers and penniless students to young professionals who can now hire out entire hostels for parties and receptions.

The association submitted a blanket application for its hostels, and over the past month almost all have been granted, to the fury of many people who live near by.

It was disclosed by The Times yesterday that Gordon Brown is to keep the 24-hour licensing laws in place despite controversy over their impact on binge drinking and alcohol-related violence. Government sources confirmed that 24-hour drinking would stay but signalled that there would be a tightening of the rules and further powers to restrict all-night licences of rowdy premises. A review into the operation of the Licencing Act, which came into effect in 2005, is due to be published at the end of this month.

The Youth Hostel Association has defended its decision, saying that a blanket application for 24-hour licences was “by far the most cost-effective way” to renew some existing licences to sell alcohol, and allow dozens more to serve wine with meals.

Hostels have become increasingly like hotels, with their own restaurants rather than kitchens for self-catering.

Of the 118 24-hour licences applied for, only one has been rejected. Ninety-three have been granted, 39 after local protests. The YHA is awaiting a decision on 21 more, and there will be hearings next year to determine a further four cases. Three applications have been withdrawn but will be resubmitted. A spokesman for the YHA denied that it was planning to turn youth hostels into Ibiza-style nightclubs.

Paul Fearn, communications manager at the YHA, said: “We have no intention of serving booze 24 hours a day or throwing allnight raves. What people did not seem to realise is that about 50 of our hostels already had 24-hour licences, many of which had to be renewed.”

John Ready, 61, an architect from Saffron Walden, Essex, who opposed the 24-hour licence for the hostel in the medieval market town, said it was a shame that youth hostels were being turned into “cheap hotels”.

Saffron Walden Youth Hostel is the oldest inhabited building in the town, a 600-year-old former maltings with oak beams, uneven floors and a walled garden. It won its case and has been granted a licence, although some conditions were attached after the protest. Although the final details are yet to be made public, it is likely to be allowed to serve alcohol only until midnight.

It is a Grade I listed building, so there are strict rules prohibiting any extra soundproofing. As a result, the windows will all have to be shut at social events after 10pm no matter how hot it gets inside. Even so, Mr Ready believes that this is not the right time for youth hostels to be getting into the drinking business.

“I think the granting of all these licences sends out all the wrong signals in the current climate in terms of drinking,” he told The Times.

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