The Competition and Markets Authority (CMA) has launched an investigation into three hotel chains alleged to have shared competitively sensitive information with one another.

Hilton, IHG Hotels and Marriott will be investigated by the UK’s competitions regulator over whether they used the hotel data analytics tool STR, owned by CoStar, to share information. All four businesses are now under investigation.

Companies use various types of data analytics tools and algorithms to help them make commercial decisions, which the CMA acknowledged can bring benefits including more intense competition, lower costs, and faster changes in prices to better match demand and supply in markets.

However, the regulator warned that when rival businesses share competitively sensitive information – including through a third-party data analytics provider – this reduces the uncertainty competing businesses normally have about how each other will act.

It added that this can affect how strongly companies compete because it makes it easier for them to predict what each other will do and coordinate their behaviour.

A statement from the CMA said: “At this stage, no assumptions should be made about whether the law has been broken. Following a period of investigation and information gathering, the CMA may issue a statement of objections if it comes to the provisional view that competition law has been infringed.”

Three of the four businesses under investigation are headquartered in the US although IHG is based in the UK, with its head office in Berkshire, England.

A spokesperson from IHG said: “IHG has been notified that the UK CMA has opened an investigation into a number of hospitality groups, including IHG, and a hotel data analytics provider, regarding suspected sharing of competitively sensitive information among competing hotel chains.

“IHG will co-operate fully with the CMA’s inquiries. The CMA noted that no assumptions should be made about whether competition law has been infringed. IHG will not be making any further comment at this time.”

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