Ofcom ruled that the episode in question, screened on ITV1 on 6 October 2012, was in breach of section 9.5 of its code, which covers 'undue prominence'.
The episode featured show contestants staying at the Corinthia Hotel in London, with several visual and verbal references to the hotel in pre-recorded clips.
Channel Television confirmed that neither it, the programme producer, nor any person connected with either received payment or other valuable consideration for the inclusion of the references to the hotel during the programme.
The references, it said, had not been subject to any product placement arrangement.
However, Ofcom noted that the production company had negotiated a reduced rate to provide rooms and services but the contract did not guarantee the inclusion of any references to the hotel in any of the episodes of The X Factor.
Ofcom considered the overall number of references to the Corinthia to be excessive and not editorially justified.
Channel Television said the references were "editorially justified" and "not unduly prominent". "[The footage was] in the context of establishing to viewers that the contestants were arriving in London, settling into their new lifestyles as performers and television celebrities, and coming to terms with their new and unfamiliar environment."
However, after re-viewing the episode, Channel Television agreed with the producers that there would not be the same editorial justification for such references in succeeding episodes, as the location had already been established with viewers.
Channel Television confirmed that any references to the hotel in succeeding episodes would be incidental and would not feature hotel signage.