At the end of they day they are directly competing with hotels. In order to ensure the competition is fair, they should be subject to the same regulations.
What if I just want to rent out one room in my home on the side, not as a business? Why, then, should I be subject to the same requirements as a huge corporation with dedicated multistory buildings, many more customers, staff, and so forth?
To me, it sounds like the taxi industry pre-Uber. Lots of questionable-value regulation created by incumbents that doesn't really hurt anyone in the real world when it's mostly ignored.
I don't know whether it's the majority, but quite a lot of them are running hotels, though often illegal hotels under local law.
Of course they are. Are you paying the host to stay in a room they own? Hotel.
edit: for all you down voters, he is the dictionary definition of the word "hotel":
"an establishment providing accommodations, meals, and other services for travelers and tourists."
Which means every "Airbed and Breakfast" is a hotel.
Theres lots of places where AirBnB (or hosts on the platform) meets the definition of a hotel and simultaneously often fail to meet the legal obligations of a hotel.
The distinction is purely legal - in this case, the semantics matter quite a bit.