The ban hit eight Airbnb owners renting apartments on the same street in Edinburgh New Town
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The properties had been advertised online, but an investigation led to them being ordered to pull over after angry neighbors complained about noise from guests.
Edinburgh City Council officials have ruled there has been a violation of planning laws as part of a crackdown on short-term rentals in the capital.
An investigation found that apartments on Queen Street in the capital were used 25 days a month by customers who booked using the popular website.
The owners had until the beginning of the month to stop their operations, which they are also announcing on Booking.com and Expedia.
But they have launched a joint appeal against the decision to the Scottish government.
The owners, who all use a rental agent, argued that no breaches had taken place and that they should be allowed to continue renting their properties to visitors.
They said they didn’t allow group bookings and avoided bachelorette parties.
The group also said other nearby properties had been rented out in the bustling city center and had not been ordered to close.
In a joint appeal document, they said: “Guests are prohibited from allowing guests or visitors to cause nuisance, inconvenience or disturbance to neighbors.
“Our clients claim that the use of the property as a short-term residential apartment is not a development because it has not resulted in a material change in use.
“A building permit is only required where development has taken place.
“The board therefore has no reason to take any formal enforcement action with respect to the existing use.
“There is no” considerable turnover of people over short periods “as the Council mentioned in the notice of execution.”
They added: “The appellants consider this apartment to be a well-used and relatively trouble-free visitor facility in a high traffic area, conveniently located for Edinburgh‘s commercial attractions.
“Consequently, the appellants consider that the use of this apartment contributes positively to the broad objectives of the council’s policy for the vitality of the city center.”
In issuing its notice of execution, the council said: “The evidence gathered as part of this investigation confirmed that the apartment is only used for the accommodation of short-term business visitors and is advertised on multiple platforms.
“The high level of occupancy and turnover is very different from residential use.
“Regardless of the outside ambient noise, disruptive movements linked to intensive exploitation have been reported to the town hall by residents.
“The intensive use of the apartments for short-term rental has led to a deterioration in the living conditions of adjacent residents.
“It is recommended that a notice of execution be served requiring the cessation of the unauthorized change of use.”
A government reporter will issue a ruling in due course.
A consultation on a new licensing system for short-term rental properties will run through August 13. Under the proposed legislation, boards will have until October 1, 2022 to establish a licensing regime, with all short-term housing to be licensed by April 1, 2024.
Existing hosts and operators must apply for a license before April 1, 2023.