Airbnb Inc. appeared to dodge a bullet Thursday after San Francisco Mayor Ed Lee vetoed a bill that would have reduced annual limits on short-term rentals in the company's home market.

The bill would have restricted hosts from renting their rooms or homes for more than 60 days a year, down from the current 90-day limit. It will likely fail as the city's board of supervisors passed the measure last month one vote shy of the eight needed to override a mayoral veto.

"This legislation will make registration and enforcement of our short-term rental regulations less effective and risks driving even more people to illegally rent units instead of complying with current regulations," said the mayor in a statement Thursday.

An Airbnb spokesman said the company didn't have an immediate comment. Representatives for the San Francisco board of supervisors didn't immediately respond to a request for comment.

Write to Greg Bensinger at greg.bensinger@wsj.com

(END) Dow Jones Newswires

December 08, 2016 23:05 ET (04:05 GMT)