www.calodging.com January + February 2024 21 and sporting events, utility companies, restaurants, and more. The narrower of the two bills, AB 537, requires “short-term lodging” providers—including hotels, motels, and residential properties rented to a visitor for 30 days or less—to advertise the total price to be paid for a night’s stay during the booking process. Violations of the law are punishable by a civil penalty of up to $10,000 for each violation. Together, SB 478 and AB 537 attempt to create a comprehensive set of disclosure rules that create a level the playing field between hotels and short-term rental sites such as Airbnb and Vrbo. While hidden fees are not limited to short-term rentals, a study by the Los WHAT DOES THIS LOOK LIKE FOR MY PROPERTY?... Under these new regulations, the advertised price must strive for transparency. For example: Service Charges and Surcharges: These must be incorporated into the displayed pricing. For example, a hotel’s room service menu must now show the total price to include a 6% service charge on food delivered via room service. Packages and Specials: If a hotel offers a holiday special of 10% off regular room rates at the time of booking when a guest also purchases a fullpriced spa session, they must include the cost of the spa in the advertised special price. … WHAT DOES NOT APPLY TO MY PROPERTY? Local Fees: In a city which assesses a “health fee” on each room night, that health fee does not need to be included in the initial advertised price. Optional Services, Amenities, or Goods: In a hotel which offers on-site parking for $20/ night, spa services for $100/ hour, these services do not need to be included in the initial displayed price since they are voluntary. Angeles Times found that 83% of short-term rentals imposed “cleaning fees” on guests that ranged from $5 to as much as $1,500. That’s one reason CHLA supported these laws, after securing certain amendments, to create a single standard across the lodging ecosystem that will hold short-term rentals and other transient accommodations accountable to the same obligations as hotels. As questions linger about the practical enforcement of these new laws and the nuanced interpretations courts may render, they resonate in the pockets of consumers. As these laws take effect, they will create a clearer price comparison for consumers choosing between short-term rentals and traditional lodging establishments. Together, SB 478 and AB 537 attempt to create a comprehensive set of disclosure rules that create a level the playing field between hotels and short-term rental sites such as Airbnb and Vrbo. REGULATIONS
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