California’s short-term rental market continues to evolve, and 2026 has brought another round of changes that hotel operators, vacation rental owners, and hospitality investors cannot afford to ignore. For businesses in hospitality, real estate, and short term rentals, the legal landscape is becoming more complex at both the state and local levels. For hotel owners…

California hotel and motel owners should take note: a recently publicized class action settlement is putting a common industry practice under the microscope, and the financial consequences can be significant. A Wake-Up Call for Hotel Owners In Flores v. Leo’s Motel, et al., a proposed $500,000 class action settlement has brought attention to how some hotels…

Do you operate your business under a different name than the company name that owns the business?  Example: Ownership entity is Om Hospitality Inc., but the business is called Sleep Inn. If your answer is yes, then you must register your fictitious business name. DBA is always required in California when a sole proprietor, or any other…

DPA Attorneys is seeing a wave of tenant class action lawsuits. Hotels are being sued for their check-in and check-out policies of avoiding guest tenancy status. Under California law, a person who occupies a motel or hotel room as his or her primary residence for 30 or more days becomes a tenant and has certain…

City officials are cracking down on building code violations. A number of hotels in the last year have been targeted by city inspectors for “dilapidated” conditions. These conditions include exposed electrical wiring, leaking plumbing, unpainted walls, trash debris in the parking lot, inoperable smoke detectors, etc. The city is deeming buildings unsafe and dangerous in…

Panic Buttons  A panic button device must be given to all employees working in guest rooms or where other employees may not be present. We would advise these devices be given to all housekeeping, houseman/women, and maintenance staff.  Device must have GPS tracking and direct contact to security guard or supervisor.  Hotels 60+ rooms must…

Increasingly, hotel owners are choosing between leasing their properties and hiring a management company. Below is a list of Pros and Cons to consider for each arrangement. Leasing Hotel      PROS: Lessee takes on the financial, operational, and legal burden Lessor receives a guaranteed fixed monthly amount Safe and secure     CONS: Significantly limits…

Hotels and Motels in the State have reported that their night shift staff receive phone calls from a person claiming to be the property owner. The caller tells the employee that they need a large amount of cash urgently and ask them to get the cash from the safe. If the employee tells the caller…