The UK’s competition watchdog has opened a formal investigation into three of the world’s largest hotel companies over suspected sharing of commercially sensitive pricing data. The Competition and Markets Authority has confirmed it is examining Hilton, IHG Hotels & Resorts and Marriott International, alongside data analytics company CoStar Group, in a probe that reaches to the heart of how the global hotel industry manages and monitors room rates. The investigation has sent an immediate signal to markets: IHG shares fell by as much as 5% in early trading following the announcement, while Hilton and Marriott each declined approximately 3%.
At issue is the use of STR, a widely used hotel benchmarking platform operated by CoStar Group. STR aggregates and provides market performance data to hotel operators, including occupancy rates, average daily room prices and revenue per available room. These tools have long been considered standard practice in hotel revenue management, enabling operators to track competitive performance and calibrate pricing strategies against prevailing market conditions.
The CMA’s concern centres on whether the data shared through STR goes beyond legitimate benchmarking and into territory that reduces competitive uncertainty between rival operators. If hotel groups are able to anticipate each other’s pricing moves with greater precision than an open market would ordinarily allow, the regulator argues, the normal competitive pressure that drives prices down for consumers may be weakened.
What the CMA is examining
The three hotel groups under investigation collectively operate more than 25,000 hotels worldwide, giving the inquiry significant scale and industry weight.
The CMA has been explicit that no conclusions have been reached and that the launch of an investigation does not imply any breach of competition law. The watchdog confirmed the initial investigation is expected to run for six months, with a decision on whether to escalate to formal enforcement proceedings expected by August 2026.
Under UK competition law, companies found to have breached antitrust rules can face fines of up to 10% of global annual turnover. The CMA also retains the power to request documents, conduct interviews and compel the disclosure of internal data as part of its evidence-gathering process.
CoStar, whose market value exceeds $18 billion, expressed surprise at the investigation. A spokesperson described STR as ‘a longstanding hotel data analytics and benchmarking platform that for decades has been used by companies and government entities alike to better assess market dynamics.’ IHG confirmed it had been notified and would cooperate fully. Hilton also indicated full cooperation. Marriott did not respond to requests for comment at the time of the initial announcement.
Not the first investigation of its kind
The CMA’s probe does not emerge in isolation. In February 2024, a class-action lawsuit was filed in the United States naming STR, CoStar and six major hotel operators, including Marriott, Hilton, IHG, Hyatt, Accor and Loews Hotels, alleging unlawful exchange of information that reduced competition in luxury hotel markets across American cities.
That case was ultimately dismissed in August 2025 by US District Judge Robert Lasnik, who found that the plaintiffs had not provided sufficient evidence to prove an illegal agreement to share pricing information. STR maintained throughout that it aggregates and anonymises data before sharing it with clients.
The UK investigation takes a different legal approach, but the underlying question is similar: at what point does a shared benchmarking tool give competitors enough visibility into each other’s commercial behaviour to constitute an indirect form of coordination?
The CMA has signalled that this question is not theoretical. In November 2025, the watchdog opened separate investigations into eight companies over online pricing practices, underscoring a broader regulatory focus on how digital tools and shared datasets affect market competition across industries.
The wider implications for hotel operators
The probe raises questions that extend well beyond the three companies named. STR is used across the hotel industry, including by independent operators and smaller groups who rely on benchmarking data precisely because they lack the internal analytical infrastructure that major chains possess.
If the CMA’s investigation leads to restrictions on how competitive data is gathered and shared, the impact on revenue management practices could be disproportionate for smaller operators. Large hotel groups with proprietary data systems and dedicated analytics teams would be better positioned to adapt. Independents and regional chains would face a more complex adjustment.
Legal analysts at Mills & Reeve, commenting shortly after the investigation was announced, noted that regulators are ‘increasingly focused on whether third-party data tools and digital platforms could facilitate coordination by increasing transparency around competitor activity.’ The concern is not necessarily that operators intended to collude, but that sophisticated data systems may achieve a similar commercial effect regardless of intent.
For revenue managers and commercial directors across the industry, the investigation introduces a compliance dimension that has not historically been central to pricing strategy. The question of what data can be accessed, how it can be used and how decisions informed by third-party benchmarks are documented is likely to become more prominent.
A defining moment for pricing transparency
The CMA’s investigation arrives as regulators in the UK and beyond are sharpening their focus on digital markets, algorithmic pricing and platform-mediated data exchange. The hotel sector is not being singled out: similar scrutiny has been applied to residential rental markets, retail and financial services.
What makes this probe significant is the industry-wide reliance on benchmarking tools that the investigation now places under scrutiny. If the six-month review finds sufficient grounds for enforcement, the consequences for how hotels price, monitor and compete could be lasting.
