UK Regulator Probes Three Hotel Groups Over CoStar’s STR Pricing Data Sharing
UK competition regulator opens formal probe into three global hotel groups over potential pricing data sharing via CoStar Group’s STR platform. CMA will examine use of occupancy and room-rate analytics, gathering evidence without conclusions yet while warning companies face fines up to 10% of global turnover.
1. CMA Opens Formal Investigation
The UK Competition and Markets Authority has launched a formal investigation into Hilton, IHG and Marriott over potential information sharing via the STR analytics platform. The inquiry is at an early stage with no conclusions reached while evidence is gathered from the hotel operators.
2. STR Platform Under Scrutiny
CoStar Group’s STR service compiles aggregated hotel metrics, including occupancy rates and average daily rates. Regulators are assessing whether access to these analytics reduced uncertainty and inadvertently enabled coordinated pricing among competitors.
3. Investigation Process and Potential Penalties
The CMA can request documents, conduct interviews and analyse platform usage data to assess compliance with the Competition Act 1998. If anti-competitive conduct is found, companies could face fines up to 10% of their global annual turnover.
4. Implications for CoStar and the Hotel Sector
Heightened regulatory scrutiny of digital market intelligence tools could impact CoStar’s reputation and future platform adoption. This probe underscores broader concerns over algorithm-driven pricing in dynamic industries like travel and hospitality.