Airbnbs at $2,000 a night instead of accommodations

Airbnbs at $2,000 a night instead of accommodations

UPDATE DAY

A building in Griffintown that was supposed to be housing now houses a sprawling apartment hotel where each night costs from $150 to $2,000.

Yesterday, our Office of he survey reported that in the midst of a housing crisis, Quebec will lend $30 million to the multinational Sonder, which specializes in short-term rentals, such as Airbnb.

The firm, whose head office is located in United States, manages the rental of 389 apartments in Montreal.

However, we found that 47 of these apartments are in a building, the Richmond, which was supposed to house more traditional housing.

In 2011, the developer Groupe Dayan requested a zoning change to allow it to to transform former industrial buildings in Griffintown into a 300-unit residential project. 

A 3 1/2 example of this building that was asking for more than $200 a night when Le Journal rented it recently.

This complex was to contribute “to the creation of a new living environment”, can we read in the documents presented to the elected officials of the Sud-Ouest borough in Montreal.

Droit acquired

When applying for the building permit for the first phase of his project, the promoter asked instead to make a hotel-apartment of 84 units.

De Of this number, 47 apartments are currently managed by Sonder and seven others are for rent on Airbnb by the Dayan Group.

“It's a business decision,” said company president Georges Dayan, who declined to comment further.

Sonder was thus able to take advantage of the zoning change to settle in Richmond, just before the Sud-Ouest borough considerably restricted the possibility of making Airbnb-type rentals there.

“Of course years later, with a housing crisis that is there, it is frustrating. There, we are currently making sure that cases of this type, we do not have any. We really regulated, ”says the mayor of the South-West and responsible for housing within the Plante administration, Benoît Dorais.

Prohibited since 2019

Since 2019, short-term rental is prohibited in the South-West except on a short stretch of rue Notre-Dame.

“Hotel-apartment use, in a residential area , was still authorized in 2018. However [Sonder] is today in “acquired rights”, specifies the communication officer of the borough, Anyck Paradis.

“At the time the permit was issued, tourist residences were authorized in this area,” Sonder also defended.

In its 300 condo project, the Dayan Group was also committed to building 15% social housing and 15% affordable housing. Forty-seven of these units are to be started this fall. 

Hotels without reception  

The Sonder company can operate “hotels” without employees at the reception, even if the current municipal regulations no longer allow it.

According to its permits obtained from Tourisme Québec, Sonder currently operates two “tourist residences including the Richmond, and four “hotels”.

On our visit, we found that three of Sonder's four hotels do not have an on-site front desk clerk.< /p>

These are the Gare St-Denis project, opposite the CHUM, Victoria, in Old Montreal, and Lofts Guérin on Le Plateau-Mont-Royal. 

Two regulations< /strong>

At the latter location, by the time Sonder opened his establishment, the borough had already attempted to counter unmanned hotels. 

However, regulations was not specific enough to prevent Sonder from offering its receive-only remote service.

Airbnbs at $2,000 a night instead of accommodation

Benoît Dorais, City councilor

“A reception had indeed been set up in the establishment, and since the notion of service was not really defined, it was difficult to demand anything at this level”, explains the communications manager du Plateau-Mont-Royal, Michel Tanguay.

This borough therefore had to regulate again to counter projects like those of Sonder.

This is also the case for the boroughs of Ville-Marie and Sud-Ouest, which now require hotels to have an employee on duty 24 hours a day.

Sonder had also opposed to this regulation.

“There has to be a reception, with someone who is there physically in place. Otherwise, it is not in conformity”, underlines the person in charge of housing within the Plante administration, Benoit Dorais.

Acquired right

Sonder can, however, operate three of its hotels under the old regulations, by virtue of acquired rights, the company defended itself.

“For this reason, we cannot speak of non-compliance with our rules, nor require the presence of an employee 24 hours a day,” says Michel Tanguay.

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