New York, Paris Lead Global Shift in Short-Term Rental Regulation

Major Cities Reshape Accommodation Markets

Major global cities are increasingly tightening regulations on short-term rental properties, a trend that is profoundly reshaping the competitive landscape for hotels and the broader tourism sector.

These policy adjustments, often driven by concerns over housing availability and neighbourhood management, are creating varied implications for room demand, pricing strategies, and investment decisions across key urban centres.

The approaches adopted by Paris, Barcelona, New York, and London illustrate a global movement towards more stringent oversight of visitor accommodation, directly influencing where travellers can stay and the market dynamics for hotel operators. The specific impact on hotels depends heavily on the type of accommodation restricted and how visitors adapt their travel plans.

New York's Revenue Boost from Regulations

New York City's Local Law 18, which established a registration system for short-term rental hosts and required booking platforms to verify these registrations, began enforcement in September 2023. This policy significantly strengthened existing restrictions, which generally prohibit renting an entire home for fewer than 30 days without the host present.

A 2025 study estimated that this enforcement led to a substantial increase in hotel average daily rates, ranging from $14 to $19 per night. Over the first 18 months following the policy's implementation, the study calculated an additional hotel revenue gain of $2.1bn to $2.9bn.

This revenue growth was primarily attributed to higher prices rather than a significant increase in the number of rooms sold, indicating a shift in pricing power for hotels.

Paris and Barcelona's Policy Frameworks

Paris distinguishes between primary residences, which can be let for tourist accommodation for up to 90 days annually, and other properties, which require authorisation to change their use and compensation for residential space loss. All furnished tourist accommodation must also be registered. These controls are linked to housing supply and neighbourhood impact.

In Barcelona, the Special Urban Development Plan for Tourist Accommodation (PEUAT) treats visitor accommodation as an urban-planning matter, regulating hotels and tourist apartments by type and location. The city also has a stated policy not to renew 10,101 existing tourist-flat licences in 2028. In 2023, Barcelona recorded 152,320 registered tourist beds, with 76,662 in hotels and 58,124 in licensed homes.

Implications for Global Hotel Markets and Asia

London, by contrast, permits eligible residential short lets for up to 90 nights a year without requiring planning permission, with effectiveness depending on enforcement. The diverse regulatory approaches in these global cities highlight the ongoing debate between urban planning, housing needs, and tourism development.

For hotel investors and operators, understanding these evolving policies is crucial for assessing competitive capacity and potential pricing power. Many Asian cities, including Singapore, Hong Kong, and Tokyo, already maintain strict regulations on short-term rentals to manage housing supply and neighbourhood impact.

The observed effects in New York, Paris, and Barcelona, particularly on hotel pricing and demand, could offer valuable insights for these Asian urban centres as they review their own tourism and housing policies, potentially reinforcing existing frameworks or informing future adjustments to maintain market stability.