Legal analysis: It is illegal. In China, any organization or individual must apply for a business license to engage in industrial and commercial business activities, and the hotel is also operated by an organization or individual. Otherwise, it is illegal to operate. Like other related industries, homestays have to apply for industrial and commercial licenses, and then go to the public security detachment of the local public security bureau to apply for special trade licenses.

legal basis: article 118 of the procedures for handling administrative cases by public security organs, when handling the following administrative cases, the places, facilities and articles specially used for engaging in unlicensed business activities may be sealed up according to law with the approval of the person in charge of the public security organ. However, the daily necessities of individual citizens and their dependent families shall not be sealed up in places and facilities unrelated to illegal acts: (1) operating an industry that requires the permission of the public security organ according to state regulations without authorization; (two) in accordance with the regulations on the administration of entertainment places, the public security organs can take measures to ban it; (3) Other public security administrative cases that are subject to seizure according to the Anti-Terrorism Law of the People's Republic of China and other laws and regulations. Places, facilities and articles that have been sealed up by other state organs according to law shall not be sealed up again.