Your CPA friend is correct.
If the average length of stay is less than 8 days, Temp. Treas. Reg. § 1.469-1T(e)(3)(ii)(A) specifically excludesthe activity as a rental activity.
This allows for the loss and the depreciation.
Here is an article that turned up on google:
This court case is strange. In this case, the person WANTED the hours to count as rental, but because of the 7 day rule, they did not.
I see you in chat, Any questions or comments?