CMA investigation into hotel data sharing: What does it mean for hotel owners and operators?
In February 2026, the Competition and Markets Authority (CMA) launched an investigation into three competing global hotel groups - Hilton, IHG Hotels and Marriott - over concerns that they may have shared commercially sensitive information through hotel benchmarking platform STR, owned by CoStar Group. CoStar are also under investigation.
Our Competition team has provided insight into this developing issue and the potential implications for the hotel and wider hospitality sectors. The analysis below explores the scope of the CMA's investigation, the competition law risks associated with the use of benchmarking platforms, and the key considerations for hotel owners and operators
STR provides hotels with a range of market intelligence data, including:
Room occupancy rates;
Average Daily Rates (ADR) for hotel rooms;
Revenue per Available Room (RevPAR); and
Room supply and future demand data.
These metrics are central to pricing and revenue management decisions. The CMA is investigating whether access to this information may have reduced competitive uncertainty between rival hotel owners and operators.
Information is “competitively sensitive” when it reduces uncertainty between competitors and potentially influences another business’ commercial strategy. The above hotel data metrics would very likely fall within this category as this is key information which hotel owners and operators would consider when making commercial decisions.
Competition authorities, including the CMA, generally recognise that data analytics tools can benefit both businesses and consumers. The CMA notes that such tools can support commercial decision-making, increase competition, reduce costs for consumers and enable businesses to price more efficiently in response to changes in supply and demand.
However, concerns arise where competitors gain insight into each other's commercial strategies or future behaviours through the sharing of competitively sensitive information. In those circumstances, authorities may view the conduct as anti-competitive coordination rather than legitimate market intelligence.
Co-ordination or collusion between competing businesses in the form of exchanging such competitively sensitive information is deemed by the competition authorities to be ‘cartel’ behaviour, which is one of the most serious infringements of competition law.
If Hilton, IHG Hotels and Marriott are found to have behaved as a cartel, each could face fines:
of up to 10% of annual global turnover;
follow-on damages claims from those affected by the cartel; and
significant reputational damage - which would undoubtedly flow from the negative publicity that such high-profile hotel chains would receive
Any company directors involved in the infringement could also face director disqualification orders, preventing them from acting as a director of any company for up to 15 years.
The CMA has been gathering evidence since February 2026 and has indicated that the current phase of its investigation is likely to continue until January 2027. These timelines are not unusual, as cartel investigations are often lengthy and fact intensive.
Importantly, the CMA has stressed that no conclusions have yet been reached and no assumption should be made that competition law has been breached.
The investigation comes against a backdrop of increased cartel enforcement by the CMA.
Following updated cartel guidance issued in 2025, the CMA has continued to encourage both whistleblowers and companies to come forward to report the existence of potentially anti-competitive behaviour. The advantages of these include:
For companies, immunity from fines for the first cartel participant to report conduct and then reduced penalties for other business that come forward and provide information in relation to the cartel; and
For individuals, rewards of up to £250,000 for cartel whistleblowers who are the first to come forward and report the existence of a cartel.
While the CMA has yet to reach any conclusions, their investigation highlights an increasingly important compliance risk for the hotel and wider hospitality sectors. Benchmarking data is used by hotel owners and operators to measure hotel performance.
An adverse decision by the CMA could lead to widespread changes to how the benchmarking of performance can be monitored across the hospitality sector. With this in mind, now is an ideal time for hotel owners and operators to review their use of benchmarking and market intelligence tools, and to ensure that their commercial teams understand the competition law boundaries around information sharing.
FAQs
Can hotel operators and owners legally use benchmarking and market intelligence platforms?
Yes. Competition authorities generally recognise that benchmarking and market intelligence platforms can be pro-competitive, providing valuable commercial insights and supporting better business decision-making. However, businesses must ensure that any information shared or accessed through these platforms complies with competition law and does not reduce strategic uncertainty between competitors.
Particular care is required where data is current or forward-looking, highly granular, or capable of revealing individual competitors' commercial strategies. Competition law risks may arise where benchmarking arrangements facilitate coordination between competitors rather than independent commercial decision-making.
What is considered competitively sensitive information in the hotel sector?
Competitively sensitive information is information that could influence a competitor's commercial behaviour or reduce uncertainty about how it will act in the market. In the hotel sector, this may include room rates, discounts, occupancy levels, revenue and profitability data, future pricing intentions, business plans, capacity decisions, demand forecasts, customer allocation information and other commercially strategic data.
Competition law concerns are particularly likely to arise where information is current, non-aggregated, identifiable to individual businesses or relates to future commercial strategy.
What are the penalties for breaching competition law?
Businesses found to have infringed competition law can face significant penalties. The Competition and Markets Authority (CMA) may impose fines of up to 10% of worldwide group turnover, while affected customers or competitors may also bring follow-on damages claims.
In addition to financial penalties, businesses can suffer substantial reputational harm, management disruption and increased regulatory scrutiny. Directors may be disqualified from acting as company directors for up to 15 years, and individuals involved in the most serious cartel activity may face criminal sanctions and personal fines.
What is cartel behaviour under UK competition law?
Cartel behaviour refers to anti-competitive agreements or concerted practices between competitors that distort or restrict competition. This can include price fixing, market sharing, bid rigging, output restrictions and the exchange of competitively sensitive information.
Importantly, competition law is not limited to formal written agreements. Liability can arise where businesses directly or indirectly exchange information that reduces uncertainty about future competitive conduct, enabling competitors to coordinate their behaviour rather than compete independently on the merits. This is one reason why the CMA closely scrutinises information-sharing arrangements, including the use of benchmarking and market intelligence platforms.
Concerned about competition law compliance?
Our Competition team can help you navigate data-sharing and competition law risks.
