UK Competition Watchdog Investigates Major Hotel Groups Over Data Sharing Concerns

The UK’s competition regulator has launched an investigation into several major hotel groups and a property data firm over concerns that the sharing of sensitive commercial information may have affected competition in the hospitality market.

The Competition and Markets Authority has confirmed it is examining whether Hilton, InterContinental Hotels Group, Marriott International and real estate analytics company CoStar engaged in practices that could have reduced competitive pressure on room pricing. The probe focuses on the use of a hotel data analytics platform that provides detailed industry performance metrics.

According to the regulator, when rival companies share competitively sensitive information, including through third party data providers, it can reduce uncertainty about how competitors will behave. This may weaken incentives to compete aggressively on price or services, as companies can better anticipate each other’s strategies.

The CMA is reviewing whether the use of CoStar’s hospitality analytics business, known as STR, allowed participating hotel chains to access data that could influence pricing decisions in a way that harms consumers. STR supplies industry benchmarks such as occupancy rates, average daily room rates and revenue per available room. These metrics are widely used across the sector to assess performance and manage supply and demand.

The regulator has stressed that its investigation does not imply wrongdoing at this stage but aims to determine whether competition law has been breached. If concerns are upheld, companies could face enforcement action or financial penalties.

CoStar said it was surprised by the CMA’s interest in what it described as a long established data benchmarking platform used by businesses and government bodies for decades. The company stated it is cooperating fully with the investigation. InterContinental Hotels Group also confirmed it would assist with the inquiry. Hilton and Marriott have not yet publicly responded.

The case highlights growing scrutiny of how digital tools and data analytics are used in competitive markets. While benchmarking platforms are common across industries, regulators have increasingly examined whether shared data could unintentionally facilitate coordination between competitors.

The hospitality sector has experienced significant volatility in recent years due to the pandemic, inflation pressures and changing travel patterns. Pricing strategies have become more dynamic, with hotels relying heavily on real time data to adjust rates in response to demand.

Last year, CoStar and several hotel chains successfully defended a consumer lawsuit in the United States that alleged improper data sharing kept room prices artificially high. The UK investigation is separate and will focus on domestic competition rules.

The CMA said it will assess evidence carefully before reaching any conclusions, as it seeks to ensure that consumers benefit from genuine competition in the hotel market.