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It's to stop people booking everything up when there's no guarantee they'll even make their targets and depriving other racers of services.
I find that explanation desperately unconvincing. I suppose it depends where the race is taking place, but unless it's in the absolute arse-end of nowhere I really can't imagine that ultracycling racers on that particular race are going to make any appreciable difference to the availability of accommodation. When Cycliste and I did TPBR we stayed in a hotel every night, and on absolutely no occasions were we sharing the hotel with another racer. OK, we weren't exactly at the pointy end of the field, but they wouldn't be in hotels anyway.
Is that a rule break @hippy?