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The decision by the racecourse, which is independently owned but enjoys a close relationship with the Royal Family, is a response to calls from celebrities led by the film star George Clooney and the singer Sir Elton John for a boycott of Brunei-owned hotels.

At the same time, Royal Ascot has taken Brunei-owned Coworth Park Hotel off its list of preferred hotels for the royal race meeting in June due to the decision last week to bring in the death penalty for people convicted of gay sexual activity in the tiny oil-rich country in southeast Asia.

The BRITISH hotels propped-up by Islamic torture - Call for boycott

Coworth Park is one of nine hotels in the Dorchester Collection, a group owned by the Brunei Investment Authority, a wealth fund created by the 72-year-old Sultan.

An Ascot spokesman said: "We have for the time being removed Coworth Park from our recommended hotels list."

But the move to end William and Harry's participation in the annual Audi Polo Challenge at polo fields in the 240-acre grounds of the five-star Berkshire hotel may be less of a political act and more a consequence of a separate decision.

William, 36, and Harry, 34, plan to cut back on polo this summer due to family commitments.

Audi said: "We haven't finalised plans for this year."

Gay rights activist Peter Tatchell has called for the Royal Family to boycott Brunei. Buckingham Palace declined to comment but sources said they would act on the advice of the British Government.