Maybe hotel chains could look into providing what modern tourists want and need. More spaces for families/groups and people happy to cook their own meals. These are the natural users of Airbnb-style properties, but I'd be happier going to a hotel if they offered a practical alternative.
Look into "extended stay hotels", which often have separate bedroom / living areas and full kitchens.
They exist, but a common problem with them is they are for really extended stays, like people working in a city for a month or whatever. Often not possible for a few days as a tourist. But yeah, they can be really good if they work out.
Or the reasonable option, which to enact regulations, including applying for a permit, and then to enforce them.
The issue is not short-term rental, the issue is too much short-term rental.