Hotels draw up battle plans as Airbnb poses rising threat

San Francisco

LAST year, Airbnb underwent a rough regulatory patch. The short-term rental company became a Federal Trade Commission target over the summer after three senators asked for an investigation into how companies such as Airbnb affect soaring housing costs. In October, Governor Andrew M Cuomo of New York signed a bill imposing steep fines on Airbnb hosts who break local housing rules.

The two actions appeared unrelated. But one group quietly took credit for both: the hotel industry.

In a presentation in November, the American Hotel and Lodging Association, a trade group that counts Marriott International, Hilton Worldwide and Hyatt Hotels as members, said the federal investigation and the New York bill were "notable accomplishments". Both were partly the result of a previ…