Posted on - February 13th 2026
This week’s short-term rentals and hospitality headlines spotlight a landmark EU court opinion that could reshape regulations across Europe, mounting challenges for direct bookings as OTAs gain ground, and regulatory adjustments in Ireland and Northern Ireland as governments balance tourism with housing pressures.
A landmark opinion from an Advocate General at the European Court of Justice has provided crucial legal ammunition for Spanish short-term rental operators challenging what they describe as disproportionate and illegal restrictions. The opinion, issued in the Smartflats v Région de Bruxelles-Capitale case (C-813/24), establishes that urban planning authorisation systems for short-term rentals must comply with the EU Services Directive—precisely the argument that Spanish associations have been advancing in their fight against Catalonian restrictions.
The ruling comes at a critical time for Spain’s embattled short-term rental sector. Barcelona plans to eliminate all 10,000 licensed tourist apartments by November 2028, whilst new Catalonian regulations effective from January 2026 have introduced the Licencia Temporal (temporary licence) system that effectively outlaws mid-term rentals by redefining almost all residential use as permanent housing subject to rent controls.
Under the Licencia Temporal framework, hosts must provide documentary evidence that rentals are genuinely recreational or holiday-based, with work, study, or medical-related stays now treated as standard residential leases requiring specific contracts: eliminating the flexible stays market that had previously thrived in the region.
Marian Muro, director general of Apartur (Barcelona Association of Tourist Apartments) and a leading voice in European advocacy through the European Holiday Home Association (EHHA), has been at the forefront of challenging these restrictions. Through EHHA, Spanish operators have consistently argued that Catalonian regulations violate the Services Directive; an argument now validated by the Advocate General’s opinion.
According to the opinion, any authorisation regime must meet five critical tests:
The Advocate General identified significant procedural deficiencies in Brussels’ tourist rental regime that mirror concerns about Spanish regulations, noting that authorisations based on broad municipal discretion and unclear criteria undermine legal certainty. Systems without binding time limits, without obligation to provide reasons for decisions, and without effective remedies fail to meet Services Directive guarantees.
Crucially, the opinion warns that treating administrative silence as automatic denial may breach EU rules, which generally require authorisation to be granted if authorities fail to respond within set timeframes. This could have significant implications for Spanish operators facing uncertain approval processes.
Apartur has launched several legal challenges to the Catalonian restrictions, including claims for damages, an unconstitutionality challenge against Decree Law 3/2023, and complaints to the European Commission for possible violation of EU law. The final court ruling is expected to influence the next generation of short-term rental regulation across the EU and could strengthen the legal position of Spanish operators challenging what they view as populist measures not based on real data.
Industry leaders argue that Barcelona once had “the best regulations in the world” following reforms in 2012, and that current restrictions represent a step backwards that will increase illegal rentals rather than solve housing challenges.
The sector maintains that authorities should focus on building adequate housing supply rather than eliminating a regulated, taxpaying industry that supports thousands of jobs. Marian Muro and Silvia Blasco Benito, president of national association, Fevitur will both be taking sessions at SCALE España in April.
Both Northern Ireland and the Republic of Ireland are refining their approaches to short-term lettings regulation, with each jurisdiction seeking to balance tourism needs against housing pressures.
Northern Ireland’s Department for the Economy is consulting on reforms to modernise tourist accommodation standards, including the creation of a new “Alternative Accommodation” statutory category.
The consultation proposes amendments to existing statutory minimum criteria and changes to visitor register and charge display requirements. Propertymark, representing letting and estate agents, has recommended creating a separate statutory category specifically for short-term private rented accommodation, noting that while STLs can fall within self-catering definitions, they have distinct characteristics as they are often former long-term rental properties managed by letting agents.
Meanwhile, Ireland has adjusted its planned restrictions on short-term lets, with new rules now applying only to towns and cities with populations over 20,000, up from the originally proposed 10,000 threshold.
Minister for Tourism Peter Burke stated the government was being “understanding” towards smaller towns with high tourism demand but limited tourist accommodation. The change follows opposition from Kerry politicians, though Burke denied the policy shift was a direct result of political pressure, citing months of discussions with the tourism sector. The legislation is expected to be introduced by mid-2026.
Online travel agencies are expanding their presence in the tours and activities market, a trend with significant implications for short-term rental operators already grappling with distribution challenges.
According to Arival’s State of Experiences report, OTA bookings accounted for 37% of the sector in 2025, up from 33% in 2024 and 28% in 2023, mirroring the broader shift in accommodation bookings.
For short-term rental operators, the data serves as a cautionary tale about the erosion of direct channels. Tour and activity operators reported declines in direct website bookings (from 29% to 25%) and direct offline channels (from 16% to 15%) between 2024 and 2025; pressures that short-term rental managers will recognise from their own businesses.
The shift is particularly notable in the attractions category, where OTAs tripled their share from 8% in 2019 to 24% in 2025, demonstrating how quickly market dynamics can change.
The underlying drivers affecting tours and activities operators are equally relevant to the short-term rental sector. Rising customer acquisition costs, combined with AI’s disruptive impact on traditional search engine optimisation, are fundamentally changing how travellers discover and book experiences.
AI-powered search results are increasingly providing answers without click-throughs, whilst AI chatbots and travel planning tools are reshaping the discovery process, making it harder for operators to capture direct traffic.
The data, collected from 5,664 qualified responses in six languages between August and November 2025, reveals that only 22% of operators find their current marketing strategies “very effective”, despite most citing growing direct website bookings as their top technology priority. This disconnect between aspiration and execution is pushing many operators towards greater OTA dependency by necessity rather than choice.
Arival’s recommendations for tours and activities operators apply equally to short-term rental managers:
Treat OTAs strategically as performance marketing channels whilst investing in owned channels
The key message: operators who fail to adapt their direct booking strategies to the AI-driven search environment risk becoming increasingly dependent on third-party platforms that extract ever-higher commissions.
China Vanke, once the country’s largest homebuilder, is downsizing its serviced apartment business following warnings of a record 82 billion yuan ($11.8 billion) loss for 2025. The state-backed property developer, which operates serviced apartments under its Port brand, is retreating from parts of the business amid mounting financial pressure from China’s prolonged property sector crisis.
The developer has entered a joint venture with New China Life Insurance and Dajia Insurance Group to transfer a 7,700-unit rental apartment project in Xiamen, with the insurers taking a combined 90% stake.
While Port will continue to manage the properties, analysts view the transaction as a bailout to support Vanke’s liquidity. Despite reporting 82 billion yuan in losses for 2025: a 65.7% increase year-on-year, Vanke continues to face significant debt repayments, with over 9.4 billion yuan in bonds maturing in the next six months according to S&P Global.
The company, which employs over 120,000 people and bills itself as China’s largest rental apartment provider, recorded its first annual loss since its 1991 listing in 2024. Shenzhen Metro Group, Vanke’s largest shareholder and a state-owned entity, has provided nearly 30.8 billion yuan in loans during the first 11 months of 2025, though a funding cap imposed in November triggered a liquidity crunch.
Dubai is progressing toward a 2026 launch of commercial flying taxi services, with vertiports nearing completion at strategic locations across the emirate. Joby Aviation, which holds an exclusive six-year agreement with Dubai’s Roads and Transport Authority, has confirmed the first vertiport at Dubai International Airport is 70-80% complete, with production of the initial aircraft for Dubai service nearly finished.
Three additional vertiport locations have been announced: Dubai Mall (in partnership with Emaar Properties), Atlantis The Royal hotel on Palm Jumeirah, and American University of Dubai serving the Dubai Marina area.
The piloted, fully electric aircraft will carry four passengers plus one pilot, with initial routes focused on airport transfers, resorts and business districts before expanding to broader city coverage.
Early pricing is expected to align with premium ride-hailing services, with a journey from Dubai International Airport to Palm Jumeirah – currently 45 minutes by car, taking approximately 10 minutes by air at speeds up to 320 kilometres per hour.
Joby plans to expand services beyond Dubai to other emirates including Ras Al Khaimah, working with regulators to convert existing helipads and develop new vertiport infrastructure. Will you catch one to SCALE Middle East this year?
Key Data and BookingsCloud partner on market intelligence integration: The global STR market intelligence provider has partnered with automated performance marketing platform BookingsCloud to connect trusted market data with ROAS-driven marketing automation, helping operators apply insights directly to demand creation and direct booking revenue.
Rental Escapes launches accessible villa collection: The luxury villa rental company has introduced a curated portfolio of properties designed with accessibility features including step-free entrances, ground-floor bedrooms, wide doorways and roll-in showers, spanning destinations including the Caribbean, French Riviera and Colorado.
Have a story the industry should be paying attention to? If you’re tracking regulation changes, market movements, destination trends or major developments in short-term rentals, serviced accommodation or hospitality, send your news to the Wire Team and feature in an upcoming roundup.
