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Hospitality industry urges Vallejo to enforce short‑term rental rules as hotels report declining occupancy
Summary
Representatives of Visit Vallejo and the lodging community urged the council to enforce existing short‑term rental rules and adopt a clear STR ordinance, arguing unregulated listings are affecting hotel occupancy, daily rates and TOT revenue. Staff said the topic is expected to appear on a future agenda.
Two speakers representing Vallejo’s lodging industry told council members during the March 26 community forum that a growing number of short‑term rentals operating outside city regulations is creating an uneven playing field for hotels and motels.
Kirk Smith, president and CEO of Visit Vallejo, said the industry represents more than 1,300 compliant room nights nightly and that, since July 2025, Vallejo’s TOT is down about 9% and hotel occupancy has declined roughly 16% from its 2022 peak. "Online booking platforms currently show hundreds of short‑term rental listings in any given month operating without collecting any TOT or VBID assessments," Smith said, urging enforcement and use of state auditing authority (SB 346 was referenced) to identify noncompliant operators.
Krupa Naran, representing the lodging community and a Visit Vallejo treasurer, echoed the call for fairness and said short‑term rental operators are undercutting hotel rates because they do not remit TOT, pay business license fees or meet fire‑and‑safety inspection requirements. "Hotels are not asking for special treatment — we are asking for fairness," Naran said.
Council members acknowledged the issue and staff confirmed options would be brought forward on a future agenda to address enforcement and an STR regulatory framework. No formal action was taken at the March 26 meeting.
