Amadeus Hospitality Is a Tough Sell Despite Progress With InterContinental Hotels Group
Photo Credit: Top image is of the bar at the InterContinental London by the O2 arena. InterContinental Hotels Group has installed Amadeus's new hospitality tech platform at more than half of its properties. Inset photo: The lobby of The James New York-NoMad, part of Denihan Hospitality Group, which has contracted with Amadeus Hospitality to use its event software. Denihan Hospitality Group
Skift Take
Amadeus hopes to clear some of the underbrush that's grown up in hotel technology. If it succeeds, it will likely reshape the costs and systems used for selling rooms industrywide.
Amadeus continues to be powered by its airline distribution business. But the Madrid-based technology giant has been eager for years to diversify its business lines — with hotel software services a top bet.
The company reported second-quarter 2018 earnings Friday. Amadeus netted $1.45 billion (€1.247 billion) in revenue, up 5 percent compared with the same period a year earlier. It booked a profit of about $330 million (€285 million), a 10 percent increase.
Amadeus's distribution business, its largest unit, earned revenue in the second quarter of about $892.6 million (€767.9 million), up about 3 percent.
Amadeus doesn't break out the numbers for its hospitality unit.
"We believe the hospitality industry has big potential and we are betting on that by making investments," said Maroto on a call with investment analysts Friday. "We aim to build a platform that combines different components that address the overall needs of the hotel industry."
Overall, Amadeus inves
