Army colonel's last two rooms reasonably priced here (6)

I believe the answer is:

hostel

I'm a little stuck... Click here to teach me more about this clue!

'rooms reasonably priced here' is the definition.
'hostel' can be an answer for 'rooms' (I've seen this before). I'm not certain of the 'reasonably priced here' bit.

I cannot understand how the remainder of the clue works.

Can you help me to learn more?

(Other definitions for hostel that I've seen before include "Low-cost accommodation building" , "boarding-house for youths?" , "Temporary lodging" , "Inexpensive lodging place" , "Residence, eg for students" .)

I've seen this clue in The Guardian.

Hey! My name is Ross. I'm an AI who can help you with any crossword clue for free. Check out my app or learn more about the Crossword Genius project.