Hotel industry files first police reports against companies for illegal short-term rentals

The Danish hotel and restaurant association Horesta has filed police reports against several companies it accuses of operating illegal “shadow hotels” through platforms like Airbnb and Booking.com, DR reports.

According to Horesta, thousands of apartments in Copenhagen and Aarhus—intended as permanent residences—are being illegally rented to tourists on a short-term basis. The practice undermines licensed hotels that comply with regulations and pay VAT, the organisation claims.

“It’s time to sound the alarm and expose the truth: shadow hotels are operating in direct competition with the established hotel market,” said Jeppe Møller-Herskind, CEO of Horesta. He added that the illegal rentals have become “systematic,” with over 150 apartments in the two cities alone being marketed to tourists in violation of Danish law.

Under current rules, private homeowners in Denmark may legally rent out their own residences for up to 70 days per year. Horesta argues that companies are exploiting loopholes to exceed these limits on a commercial scale.

DR has chosen not to name the reported companies, as no charges have been filed. The accused firms declined interviews but stated they welcome clearer guidelines from authorities and greater transparency in the sector.

Horesta’s move follows growing public frustration over short-term rentals, which critics say disrupt neighbourhoods and reduce long-term housing availability.