SANTA FE, N.M. (KRQE) – A historic Santa Fe hotel is embarking on a new business venture which they said will help them accommodate more guests. La Fonda On the Plaza is now branching out and offering short-term rentals.

After a century of hotel stays, La Fonda is looking toward its future. “It’s really a part of Santa Fe. It’s been called Santa Fe’s living room,” said La Fonda On the Plaza Vice President, Rik Blyth.

The hotel’s wedding coordinator advised them that when the hotel hosts weddings, much of the wedding party would stay in Airbnbs – pushing the hotel to figure out how to make more room. Blyth mentioned they don’t have enough rooms to accommodate the number of guests who want to stay.

As the saying goes, “If you can’t beat them, join them,” and the hotel is now offering short-term rentals. Blyth added, “Short-term rentals aren’t going anywhere, Airbnbs are not going to go anywhere.”

First, in January 2022, La Fonda bought the Old Santa Fe Inn. Then, in February of last year, they partnered with AdobeStar Properties, who bought and renovated different buildings around town to create 26 short-term rentals. They’re calling it Santuario by La Fonda, which they have been renting out since February.

The hotel said the rooms are one to three-bedroom units with full kitchens. “It’s something we did not have at La Fonda. It was a perfect offering for us to say we have the Old Santa Fe Inn, we have La Fonda, and now we have the Santuario by La Fonda which is a totally different animal than what we’ve had in the past,” said Blyth.

The units vary in style, from more modern to adobe looks. While they’re not connected to the historic hotel, they are just blocks from the Santa Fe Plaza. La Fonda’s goal is to ensure more people stay with them while also providing a more convenient option.

Santa Fe adopted a city-wide cap of 1,000 short-term rental permits on residential properties. La Fonda said all of their properties fall under the commercial business district.

Room rates vary on how busy Santa Fe is. Some of the new short-term rentals could cost more than $900 a night in season. Bookings can be made on La Fonda’s website as well as on short-term rental platforms.