> but if I'm a landlord, why would I give up having a stable tenant paying market rate rent for 12 months at a time for essentially managing a hotel room.

As of today, there is a lot less paperwork involved, and also the tenant has fewer rights. If you rent for 12 months, and they stop paying you, it could take you many months to get rid of that person, and you'd never get the money back. You also have to find renters and negotiate leases yourself.

With AirBnB, they take care of the finding and negotiating part, and if you manage to get a popular spot, you'll make far more money with the short term rentals, even accounting for AirBnBs cut and any service providers you might need to maintain the place.