The Competition and Markets Authority (CMA) has launched an investigation into Hilton, IHG, Marriott and data provider CoStar over the suspected sharing of competitively sensitive hospitality information.
The probe focuses on the use of STR, a hotel data analytics tool owned by CoStar. The regulator is examining whether the use of this third-party service reduced commercial uncertainty between the rival chains, potentially enabling coordinated behaviour.
The investigation is part of a broader regulatory focus on how data analytics and algorithms impact market competition. While such tools can lower costs and help businesses match supply with demand, the sharing of sensitive data via third parties can weaken the incentive for companies to compete on price or service.
Following the information-gathering phase, the CMA may issue a statement of objections if it provisionally finds that law has been infringed. However, it also stated that no assumptions should be made at this stage regarding whether competition law has been breached.
IHG and CoStar have confirmed in a statement that they will cooperate fully with the inquiries.
The CMA said: “At this stage, no assumptions should be made about whether the law has been broken. Following a period of investigation and information gathering, the CMA may issue a statement of objections if it comes to the provisional view that competition law has been infringed. This investigation reflects the CMA’s wider commitment to ensuring new technologies support fair competition and do not harm consumers.”
In a statement, IHG added: “InterContinental Hotels Group PLC (IHG) has been notified that the UK Competition and Markets Authority has opened an investigation into a number of hospitality groups, including IHG, and a hotel data analytics provider, regarding suspected sharing of competitively sensitive information among competing hotel chains. IHG will co-operate fully with the CMA’s inquiries.”
CoStar told Hotel Owner: “We can confirm that our UK team is co-operating fully with the UK Competition and Markets Authority, which we understand has opened an initial investigation into the sharing of information among hotel operators. We are happy to provide the CMA with assistance.
“We are surprised at the CMA’s interest in a long-standing hotel data analytics and benchmarking platform, that for decades has been used by companies and government entities alike to better assess market dynamics. Meanwhile we remain focused on delivering best-in-class, pro-competitive products and services to our customers in the UK and beyond.”
Hilton and Marriott have been contacted for comment.
