The Farrier at Cayton, near Scarborough, is owned by mother and daughter duo Suzie and Dani Bushby, who were tearful at the win which was made possible by an over-payment of £40 by rivals the Bay House, Scarborough.
Linda Milner who, with help from Lani Rogers, runs the Bay House in Esplanade Road, Scarborough, and Suzi and Dani were among the four couples battling it out for the plaque.
They were up against N’ista Boutique Room in Birkdale, Merseyside, and Oakleigh Guest House, Blackpool.
A post on their Facebook page said: "We are delighted to tell you that Dani has now stopped crying & we proud to announce The Fabulous Farrier is the winner of Four in a Bed! Yay!
"We would like to take this opportunity to thank everyone involved. We have met some friends for life our our Four in a Bed journey. Hope you enjoyed watching!"
In Four in a Bed, owners of four B&Bs have to check out each other’s properties and pay what they think the stay is worth. They judge the stay on cleanliness, hostings, sleep and breakfast.
The best value B&B is revealed at the end of the week.