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Hospitality Industry and Short-Term Residential Housing

August 17, 2022

hotelAre you planning a vacation? As you book your travel arrangements and lodging, you may notice that the hospitality and resort industry continues to evolve to provide more lodging offerings and amenities. Short-term housing options have also become increasingly popular as an alternative to staying in hotels or motels. Classification 9050, Hotels, Motels or Short-Term Residential Housing, applies to the operation of hotels, motels or short-term residential housing. It defines short-term residential housing, such as vacation rentals and timeshare properties, as housing units that are rented for not more than 30 consecutive days.

Employers assigned to Classification 9050 are increasingly providing recreational, personal care and leisure services such as health clubs, golf courses and spa services. Such services are not necessarily integral to the provision of lodging. Historically, these additional operations were assigned in accordance with the Multiple Enterprises Rule when conducted in connection with a hotel. Effective September 1, 2021, Classification 9050 was amended to direct that recreation, leisure or resort operations – including but not limited to country clubs, golf courses, casinos, gaming clubs, spas, baths, health clubs, gyms, barber shops or hair salons – shall be separately classified. Thus, when spa, massage or personal appearance services are performed in connection with hotels, motels or short-term residential housing, these operations are separately classified, without applying the Multiple Enterprises Rule.

The following classifications contemplate some of the common recreational, personal care and leisure services that may be provided by hotels, motels, vacation rentals and timeshare properties assigned to Classification 9050; they are all separately classifiable. The full classification descriptions are available through the Classification Search tool on wcirb.com and through the following links:

Classification 9050 also directs that the operation of residential housing where more than 75 percent of units are rented for longer than 30 consecutive days is assigned to the applicable Property Management/Operation Industry Group classification. For example, a 20-unit apartment building, where 4 units are used as short-term vacation rentals and 16 units are leased on an annual basis, is classified as 9011(1)/8740(1), Apartment or Condominium Complex Operation – N.O.C., as 80 percent of the units are rented for more than 30 consecutive days.

Similar instructions regarding classifying short-term residential housing operations are in Part 3, Standard Classification System, Section IV, Special Industry Classification Procedures, Rule 8, Property Management/Operation, and in Classification 9066, Homeowners Associations and Housing Cooperatives.

Related Information

Classification Search
Classification Information
WCIRB Report on the Hospitality and Resort Industry