The UK's competition regulator has launched an inquiry into three of the world's largest hotel groups, Hilton, InterContinental Hotels (IHG) and Marriott, over suspicions they may have shared competitively sensitive information through a data analytics tool.
The Competition and Markets Authority (CMA) is examining whether the companies, which together operate more than 25,000 hotels worldwide, breached competition law by using the STR platform, owned by real estate data firm CoStar. The regulator said such information sharing could reduce uncertainty between rivals and make it easier for them to coordinate behaviour, potentially harming customers.
The CMA noted that using data analytics and algorithms to set prices is common and can improve competition, but sharing that information with competitors raises concerns. The investigation will run for up to six months, after which the regulator could issue a statement of objections if it finds evidence of infringement. Companies found in breach can be fined up to 10% of their global revenue, though leniency is available for those that self-report.
Shares in FTSE 100-listed IHG fell as much as 5% on Monday, while Hilton and Marriott dropped 3% and CoStar declined about 2%, amid wider market turmoil linked to Middle East conflict.
CoStar said it was cooperating with the CMA but expressed surprise at the regulator's interest in a platform that has been used for decades by companies and government entities. IHG and Hilton also confirmed they were cooperating fully. The CMA said no assumptions should be made at this stage, adding that the inquiry reflects its broader focus on ensuring new technologies support fair competition.
