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Home My WebLink AboutSubmittal-Henry Patel-Letter and State Bill■ ASIAN AMERICAN HOTEL OWNERS ASSOCIATION March 22, 2017 The Honorable Tomas Pedro Regalado Mayor, City of Miami 3500 Pan American Drive Miami, FL 33133 Dear Mayor Regalado, Submitted into the pub record fpr itery(s on I am writing on behalf of the Asian American Hotel Owners Association (AAHOA), the world's largest hotel owners trade association with 16,655 members nationwide and nearly 750 in Florida. Our members own nearly one in two hotels in the country. I am writing to voice our members' support for a level playing field for all lodging businesses. Hotels have been operating under the laws and regulations set out by state and local governments for decades. Sometimes it is not easy, and we have certainly disagreed with laws that have been passed from time to time. But we obey the law because that is what we do in America — even when we disagree. The same cannot be said for short-term rentals that operate on websites like Airbnb.com. The law is clear that accommodations plus payment equals lodging. That means that short-term rentals should be subject to the same taxes our members have been paying by the millions to support tourism promotion, convention centers, sports facilities, state and local general budgets, and much more. That also means that the health, safety, fire prevention and disability -access guidelines that our members abide by to ensure all guests receive the best accommodation possible should apply, as well. There is simply no logical argument otherwise. Why should a guest with disabilities be denied accommodation at a short-term rental? Why should a guest at a short-term rental have to guess if the fire alarm or smoke detector is working properly? For these reasons, we must voice our support for a level playing field for all lodging businesses, on behalf of AAHOA's 16,655 members nationwide and nearly 750 in Florida. When everyone plays by the same rules, all businesses can fairly compete. That is the American way. Thank you for your time and consideration of this letter. Please do not hesitate to contact me with any questions. Sincerely, fi 4?-"/— Chip Rogers President and CEO City Clerk 3\)\-\-o\ - 6(1 o‘.\-t\ Lt,V\..t( ow4 3)-0\k A A i:q ASiAN AMERICAN HOTEL OWNERS ASSOCIATION Submitted into the pt lyc record f r hefts) on :� / i 1 . City Clerk About the Asian American Hotel Owners Association (AAHOA): • The world's largest hotel owners trade association, with 16,655 members nationwide. • Our members own nearly one in two hotels in the country. • Our members, the vast majority of which are small business owners, employ more than 600,000 people and pay out nearly $10 billion in payroll annually. • Nearly 750 members in Florida. Hoteliers welcome competition on a level playing field: • Competition works best when everyone plays by the same set of rules. • We have always supported the rights of property owners to occasionally rent their homes to earn extra income. • However, we have seen in cities across the country that the real face of short-term rentals like Airbnb are not occasional renters but unregulated commercial operators running multi -unit, full time lodging businesses, with a significant portion of Airbnb's revenue in major U.S. cities driven by commercial activity. Commercial landlords are using platforms like Airbnb to rent out multiple residential properties year-round, just like a hotel, while avoiding regulation and taxes: • According to a new analysis released by CBRE Hotels' Americas Research, a leading real estate research company, short -tens rental companies are providing a platform for commercial operators to run illegitimate, unregulated and often illegal hotels in communities. • This report adds to the overwhelming evidence that a significant and rapidly growing portion of Airbnb's revenue in the U.S. is generated by operators who rent out more than one residential property to short-term visitors. • That's not homesharing, that's a lodging business. • True home -sharing, where the owner is present during the guest's stay, accounts for less than 20 percent of Airbnb's business. 81 percent of Airbnb's revenue nationwide — $4.6 billion — comes from whole -unit rentals where the owner is not present. • Furthermore, over $1.8 billion — 32 percent of Airbnb's total revenue -- is not being generated by middle class folks but by multi -unit operators who rent out two or more entire home units. And even more troubling, this is the fastest growing segment of Airbnb's business: The revenue derived from these multi -unit hosts in the 13 markets rose 89 percent year -over -year. • The share of Airbnb revenue from multi -unit hosts increased in each of the 13 markets studied, except for in San Francisco and New York City, markets where local policy makers have taken bold steps to protect communities and curb illegal operators. This indicates that regulation of commercial operators could have a significant impact on Airbnb's bottom line earnings potential. • This report echoes a growing body of research that shows commercial operators are increasingly using Airbnb to rent out multiple residential properties year-round, just like a hotel, while avoiding commonsense zoning rules, taxes and other community safety regulations. • The markets with the highest share of total revenue derived from multi -unit hosts are Miami (57.9 percent), Oahu (53.5 percent) and New Orleans (42.3 percent). • In two of the cities studied, the majority of Airbnb's whole -unit revenue is derived from operators listing more than one unit. • In Miami, more than 89 percent of Airbnb revenue comes from entire — home rentals. www AA,iQP COM All lodging businesses should play by the same set of rules: ■ Commercial operators using sites like Airbnb Lain an unfair and significant competitive advantage by running multi -unit. Cull -time lodging businesses vN idiom ovcr,sight and not complying with long established public health and safety rules or paying required tuxes. ■ To provide a level playing field for all lodging businesses. short - term rentals should be subject to the same taxes that our members have been paying by the millions to support tourism promotion, convention centers. sports facilities, state and local budgets and much more. Sou rces: • Florida Restaurant and lodging ,Association. • Lane, Jamie and Woodworth. R. "1 losts with Multiple Units - A Key Driver to Airbnb Growth." CBRF. Hotels' Americas Research. March 2017. https://www.ahla.com/hosts-multiple-units-key-driver-airbnb-growth Submitted into the pty. l' record fcir ite (s) \ t on 3 (Z3 11 . City Clerk LIS > Bill Tracking > SB1578 > 2017 session 17 SESSION SB 1578 Short-term rental of property; registration of persons offering property for rental. Introduced by: Thomas K. Norment, Jr. I all patrons ... notes I add to my profiles SUMMARY AS PASSED SENATE: (all sum maries) Submitted into the pu lic 3/22/17, 22:39 record f9 r iten1(s on 3 113 1 . City Clerk Short-term rental of property. Authorizes a locality to adopt an ordinance requiring the registration of persons offering property for short-term rental. The bill defines "short-term rental" as the provision of a room or space suitable for sleeping or lodging for less than 30 consecutive days in exchange for a charge for the occupancy. Persons and entities already licensed or registered related to the rental or management of property by the Department of Health, the Real Estate Board, the Virginia Real Estate Time -Share Act, or a locality would not be required to register. The bill authorizes localities to impose penalties not to exceed $500 per violation on persons who violate the registry ordinance. The bill amends the Alcoholic Beverage Control (ABC) Act to clarify that certain property rented on a short-term basis is considered a bed and breakfast establishment for purposes of ABC licensing and that the exception from ABC licensing for serving alcoholic beverages to guests in a residence does not apply if the guest is a short-term lessee of the residence. This bill incorporates SB 1579. FULL TEXT 01/20/17 Senate: Presented and ordered printed 17100761D pdf I impact statement 02/02/17 Senate: Committee substitute printed 17105130D-S1 pdf 03/07/17 Senate: Bill text as passed Senate and House (SB1578ER) pdf HISTORY 01/20/17 Senate: Presented and ordered printed 17100761D 01/20/17 Senate: Referred to Committee on Rehabilitation and Social Services 01/27/17 Senate: Rereferred from Rehabilitation and Social Services (13-Y 1-N) 01/27/17 Senate: Rereferred to Local Government 02/02/17 Senate: Reported from Local Government with substitute (11-Y 2-N) 02/02/17 Senate: Committee substitute printed 17105130D-S1 02/02/17 Senate: Incorporates SB1579 (Stanley) 02/03/17 Senate: Constitutional reading dispensed (39-Y 0-N) 02/06/17 Senate: Read second time 02/06/17 Senate: Reading of substitute waived 02/06/17 Senate: Committee substitute agreed to 17105130D-S1 02/06/17 Senate: Engrossed by Senate - committee substitute SB1578S1 02/07/17 Senate: Read third time and passed Senate (36-Y 4-N) 02/09/17 House: Placed on Calendar 02/09/17 House: Read first time 02/09/17 House: Referred to Committee on General Laws 02/10/17 House: Assigned GL sub: Subcommittee #1 02/14/17 House: Subcommittee recommends reporting (7-Y 0-N) https://lis.virginia.gov/cgi-bin/Iegp604.exe?ses=171&typ=bil&val=sb1578 Page 1 of 2 LIS > Bill Tracking > SB1578 > 2017 session 3/22/17, 22:39 02/14/17- House: Subcommittee recommends referring to Committee on Appropriations 02/16/17 House: Reported from General Laws (21-Y 0-N) 02/16/17 House: Referred to Committee on Appropriations 02/20/17 House: Reported from Appropriations (21-Y 0-N) 02/21/17 House: Read second time Submitted into the pIbc recordfq.�e on II j� City Clerk 02/22/17 House: Read third time 02/22/17 House: Passed House (86-Y 14-N) 02/22/17 House: VOTE: PASSAGE (86-Y 14-N) 03/07/17 Senate: Enrolled 03/07/17 Senate: Bill text as passed Senate and House (SB1578ER) 03/07/17 House: Signed by Speaker 03/10/17 Senate: Signed by President 03/13/17 Senate: Enrolled Bill Communicated to Governor on 3/13/17 03/13/17 Governor: Governor's Action Deadline Midnight, March 27, 2017 https://I is.vi rgi n ia.gov/cgi-bin/leg p604.exe?ses=171 &typ=b i i&va l=sb1578 Page 2 of 2