Phoenix, Arizona—For most of the last several weeks, Airbnb has been the hot topic in the Phoenix area.
The company is facing a lawsuit over a policy of refusing to rent apartments to people from a certain state.
Airbnb is accused of discriminating against its own users by requiring them to check in for the service as soon as they log in.
The lawsuit, filed by Phoenix resident Eric Soto and a coalition of local groups, is expected to be heard in February.
In the meantime, the Phoenix-area community has taken to social media to voice their opposition to Airbnb, calling the company’s practices inhumane and discriminatory.
In response, Airbnb took to social networks to announce that it would be shutting down Phoenix’s hotel, the The Grand Hotel.
“We are very disappointed in the way the lawsuit has been handled and we are working to ensure that all hotel rooms are rebooked,” Airbnb spokesperson Sarah McFarland told The Daily Dot in a statement.
The Grand has a capacity of 8,500, and the owners of the property have been negotiating with the company about rescheduling the rooms, according to the Associated Press.
The move is also part of a broader strategy to end Airbnb’s presence in Phoenix, which is home to a growing number of tech workers who prefer to live in smaller homes.
In an effort to combat Airbnb’s growing influence in Phoenix and other major cities, the city is planning to regulate the company in a way that would prohibit it from renting apartments to customers from states where it does not have a hotel license.
Airbnb has repeatedly declined to comment on its legal battles, but it has previously stated that it does “not discriminate based on nationality, race, religion, sexual orientation, or gender identity.”
Airbnb is currently embroiled in a battle with the city of Austin, Texas, over its ability to operate its Airbnb platform in the state.
In April, the Austin City Council voted to approve a measure to prohibit the service from operating in the city and to regulate Airbnb in a similar way to the city’s housing code.
Airbnb and the city are now in the process of negotiating a settlement that could include an agreement to prohibit Airbnb from operating.
Airbnb said that the city would also be allowed to impose stricter hotel occupancy limits in order to prevent Airbnb from unfairly impacting hotel occupancy rates in Austin.
“There is no doubt that Austin has some of the highest occupancy rates of any city in the nation, and that’s not fair to the hotel industry,” Airbnb CEO Brian Chesky told The Wall Street Journal in May.
“Our hope is that we can work together on a settlement and ensure that the City of Austin has the resources it needs to make sure that the Airbnb experience is fair for everyone in the Austin market.”