Airbnb files lawsuit against City of Biloxi concerning short-term rentals
BILOXI, Miss. (WXXV) — A major short-term rental company has filed suit against the city of Biloxi, alleging the city conspired with the Mississippi Hotel & Lodging Association to restrict short-term rentals and protect the hotel industry.
A lawsuit was filed in the U.S. District Court for the Southern District of Mississippi on Wednesday by Airbnb and a Biloxi resident. Airbnb argues the city’s conduct violates federal and state antitrust laws.
The lawsuit comes after a property owner bought a home in the city with intentions of using it as a short-term rental, but as stated in the suit, city ordinances have prevented her from doing so.
The lawsuit claims that an ordinance passed by the city in 2016 “sharply restricts” where short term rentals can operate, in turn, driving up hotel prices and limiting options for consumers and residents. Another ordinance was passed by the city in 2023, establishing a cap on conditional use permits for short-term rentals to 75.
The lawsuit specifically noted that Biloxi City Councilman Kenny Glavan has supported restrictions on Airbnbs in the city while working as a hotel executive and as president of the Lodging Association. The lawsuit states that Glavan voted on these ordinances instead of recusing himself due to a conflict of interest.
Airbnb is now seeking unspecified damages and penalties through the lawsuit. They are also requesting that the court declare both short-term rental ordinances as unlawful restraints on trade and order the city to stop enforcing them.
We reached out to city officials, who tell us Mayor FoFo Gilich is out of the country right now, but they did provide WXXV with the following statement.
“The City of Biloxi only learned of this lawsuit today through the media. Our short-term rental ordinances have been in place for several years and are based on similar regulations in other cities. The plaintiff in this case is looking to put a short-term rental in a residential neighborhood. It appears that Airbnb is trying to have no rules for these types of neighborhoods and allow short-term rentals.”
We also reached out to Councilman Kenny Glavan, but at this time, we have not heard back. We will provide updates as this story continues to develop.
To read the full lawsuit, click here.
