Airbnb responded with the following statement:
"This decision runs contrary to the stated intention and the plain text of New York law, so obviously we are disappointed. But more importantly, this decision makes it even more critical that New York law be clarified to make sure regular New Yorkers can occasionally rent out their own homes. There is universal agreement that occasional hosts like Nigel Warren were not the target of the 2010 law, but that agreement provides little comfort to the handful of people, like Nigel, who find themselves targeted by overzealous enforcement officials. It is time to fix this law and protect hosts who occasionally rent out their own homes. Eighty-seven percent of Airbnb hosts in New York list just a home they live in--they are average New Yorkers trying to make ends meet, not illegal hotels that should be subject to the 2010 law."
However Airbnb hosts should not be too worried, since the city only enforces the law when a complaint is filed.
For those not familiar with Airbnb, it is a service for those who want to rent out their living space for a short term stay for guests. Rates are usually much cheaper than most hotels in cities.