If it's your primary residence that you live in for e.g. 80% of the year and you swap with other primary residences or actually stay in normal hotels when travelling, I can't see any distortion there.

Not trying to apologize for hosts or hotels in particular, I just feel like primary residence swapping is pretty harmless. Also, if hotel licenses are required, how is adding more hotels distorting the hotel market other than adding a tiny amount of fair and regulated competition?