Kings Beach Hotels Are Quietly Disappearing — Here’s What We Can Do About It

Over the past couple of decades and now amplified in the past couple of years, something unexpected has been happening in downtown Kings Beach and Tahoe Vista: our small, locally-owned hotels and tourist cabins are being bought up and turned into long-term dorm-style housing for seasonal workers, mostly international J-1 visa holders. These are called Single Room Occupancy (SRO) units.

Why is this happening and amplified now? It turns out there was a well-intended policy change in 2020 by Planners with Placer County and TRPA to help provide more housing options in the area. The idea came from trying to solve a code compliance and land use problem in South and North Lake Tahoe, where many older hotels were being used as long-term homes for families and individuals living and cooking in units. The properties were not going through a Change in Operation permit process to convert their Tourist Accommodation Units (TAUs) to Residential Units of Use (RUUs) . The SRO policy had two intended outcomes:

• Provide more housing options and flexibility by streamlining the change of use from a transient/tourist use (less than 30 days) to a residential use that is permanent in nature (30 days or more).
• Cure the land use code compliance issue for the agencies that were knowingly looking the other way and not requiring the conversions of use via the Change in Operation process.

What was missed by Placer County policy implementation approach was that the change in land use initiates a change in California Building Code Occupancy Classification. This meant that even though it is an allowable land use Change in Operation what now was required from the California Building Code are upgrades based upon the long term living/cooking in the units.  The Occupancy Classification changes from R-1 (hotel, motel, transient, etc.) to R-2 (apartment, condo, non-transient). Typical requirements and life safety upgrades include:

• Fire alarms and sprinkler systems
• Rated fire walls between units
• Energy Code upgrades including venting and fresh air
• Plumbing and electrical for cooking and laundry
• American Disability Act compliance

But in Kings Beach and Tahoe Vista, we’re seeing very different—and very fast—results.

What’s Going On?

• Hotels continue to disappear at a rapid rate. Downtown Kings Beach and Tahoe Vista are experiencing a rapid disappearance of small, locally-owned hotels and tourist cabins. Numerous properties have already been converted into long-term, dorm-style housing, and only a few traditional hotels remain in operation in Kings Beach, with many others now boarded up and in disrepair. There is concern that more properties may be at risk of similar conversion.
• Big ski resorts and hotel properties in other communities are buying Kings Beach/Tahoe Vista hotels to house their seasonal workers far away from their base areas without mitigation. It’s fast, cheap, and avoids the cost of building their own housing.
• No upgrades, no checks. While the occupancy change requires building code upgrades when a hotel becomes long-term housing, this step is often skipped. There’s no clear system to catch it.

Why It Matters to You

• We’re losing overnight visitors in our town centers where they belong. Kings Beach used to be a place where visitors stayed the night. With fewer hotel rooms and cabins, fewer people spend time and money at our local restaurants, shops, and events. The lack of lodging is now a top barrier to success for our newly remodeled Event Center.
• Our community is becoming temporary. The new residents in these SROs are mostly seasonal. They don’t vote, start businesses, have kids that go to school here, or participate in local events. That weakens our sense of community.
• We’re missing out on key funding. Hotels generate Transient Occupancy Tax (TOT), and create additional business opportunities. This TOT revenue can pay for tourism impacts, sidewalks, parks, beach access, and other things in Kings Beach/Tahoe Vista like the funding is used in Tahoe City for trails, public art, and community investments that we all value. With hotels gone, so is that funding.

How Did We Get Here?

Placer County’s 2020 SRO ordinance made it easier to convert hotels into long-term rentals. In most zones, converting a hotel into an SRO with 30 or fewer units now only requires simple “zoning clearance”—not a public hearing or even a building inspection.

In South Lake Tahoe, the City has continued to monitor and refine the SRO policy to include clear code enforcement policy and implementation and the development of signage and a code enforcement confidential hotline for tenants. They continue to monitor the code challenges while investing in a variety of successful housing initiatives. As safe and affordable housing comes online they continue to evaluate the need for SROs. The difference between Kings Beach and South Lake are scale (number of hotels and housing units available) and implementation priorities. 

The intention of the SRO policy was good: reduce red tape for people trying to create housing for vulnerable groups. But here in Kings Beach, it’s had unintended side effects.

What Can We Do Now?

This isn’t about blame—it’s about learning and adjusting. Here’s what we can do together:

1. Pause or update the SRO policy locally. Let’s take a fresh look at how this policy is playing out in Kings Beach and elsewhere. 

2. Enforce the building code review. The policy says a conversion must trigger building upgrades—but this isn’t happening. We can fix that with clearer guidelines and follow-through enforcement activities.

3. Direct J1 housing to where it belongs. Big employers should house their peak demand workforce near their resorts to minimize transportation needs and prioritize long-term employee housing near town centers to build a sense of community. Right now, they’re shifting that responsibility onto our community in an inequitable manner.

4. Protect what’s left. Let’s preserve the few hotels we still have. They’re key to our economy, our future, and our community character. Land use policy needs to reflect community investment priorities.

5. Make this part of our revitalization strategy. This isn’t a side issue—it’s central to the future of Kings Beach. We need real solutions in our town center, and that starts with land use choices that support people who live, work, and visit here.

We can make Kings Beach a place that supports both residents and visitors. A place with vibrant streets, thriving local businesses, and a mix of housing types that work for everyone—not just seasonal needs.

Let’s make sure we’re moving in a direction that builds long-term wealth and connection in our town.