The UK Competition and Markets Authority (CMA) is investigating Hilton, Marriott, InterContinental Hotels Group (IHG), and data analytics firm CoStar over the potential sharing of competitively sensitive information via CoStar’s STR data tool and related pricing algorithms.

Pricing algorithms and data analytics can boost competition and efficiency, but using a third‑party provider to share sensitive data may reduce uncertainty about rivals’ actions and enable coordination.

This probe fits the CMA’s broader push to ensure new pricing technologies promote fair competition and are not used to disadvantage consumers.

Hilton and Marriott have been contacted for comment, though no statements were provided at the time of reporting.

The CMA emphasizes that no conclusions have been made about law violations yet and may issue a statement of objections after further investigation.

If the CMA forms a provisional view of infringement, it may issue a statement of objections under the Competition Act 1998 process.

The CMA operates a leniency policy offering potential immunity or reduced penalties for cartel participants who report conduct and assist investigations, with individuals potentially gaining immunity from criminal prosecution in certain cases.

Updates on the case will be published on the CMA’s case page, and journalists should contact the CMA press office for inquiries.

The three hotel groups and CoStar are under scrutiny, with no conclusions yet about breaches of competition law.

IHG said it would cooperate; CoStar said it would assist and expressed surprise at the investigation’s focus, while Hilton, Marriott, and IHG have been approached for comment.

IHG’s shares fell about 5% in early trading amid the CMA inquiry, reflecting market reaction while the company reiterated cooperation with the CMA.

The investigation centers on whether data-driven tools and algorithms enable anti-competitive coordination, potentially affecting how hotels set prices, manage costs, and align supply with demand.