Zacks_Analysts' Blog : MICROS, Delta Hotels Join Forces - Analyst Blog

MICROS Systems Inc. (MCRS) recently formed a partnership with Delta Hotels and Resorts, through its subsidiary MICROS eCommerce Services|TIG Global. The financial details of the deal were not disclosed.

Based in Canada, Delta Hotels and Resorts is a hospitality company with 46 full-service, city center and airport hotels and resorts under the Delta brand. Delta Hotels and Resorts, which can boast a refined assortment of properties exclusive to the Canadian region, has an edge over its competitors.

Under the partnership framework, the company will deliver a unique user experience from top-to-bottom by combining the MICROS OPERA Reservation System and CRM proprietary booking technology with  an innovative web design and strategy. In addition, MICROS is developing a new web presence for capturing the attributes of Delta Hotels and Resorts.

The company also has a long-term partnership with Delta Hotels and Resorts as a booking engine provider.

In 2009, Micros acquired TIG Global, which allowed the company to offer complete end-to-end solutions to hotel customers for the marketing of hotel rooms, and alternative distribution platforms. The company’s strategic acquisitions have enabled it to enhance its systems product offerings, leading to increased customer base and market share.

MICROS designs, manufactures, markets and services enterprise information solutions for the hospitality and specialty retail industries.

We believe that recovery in vertical markets such as hotel, restaurant and retail will have a positive impact on the business. Moreover, MICROS’ service offering Simphony and new mobile application will draw customers.

However, we are concerned about the prevalent weakness in the domestic hotel business and the impact of rising gas prices on the restaurant business. Thus, we would like to be on the sidelines until we get more clarity on the recovery of the company’s businesses.

We have a long-term Neutral recommendation on MICROS. Currently, MICROS has a Zacks #3 Rank, implying a short-term Hold rating.