On french-side St. Martin, there simply is no way that a "hotel," taxed and regulated as such, can compete on price or (in my opinion) value with the huge market of accommodations of which airbnb is just a part. We have rented direct with an owner of a room or condo for well over ten years - pay in cash - and do not worry about the owners' tax returns. This is far easier on sxm for us, of course, because of how long we have been visiting the island and how well we know the island and many people on the island. I think it just a slight exaggeration to say that in St Martin (at least french-side) it is hard to know anyone who does not have a room or place that they would rent out to you for a stay or a family member or close friend who would.

When traveling to places we have never been or visit only very rarely, places in Europe for example, I still am inclined to look at licensed hotels because of a (probably completely unnecessary) concern about not knowing the area or the people renting out rooms.