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Sheraton Contract Puts Adaco Near $2 Billion

Adaco Services LLC, an Amherst software company that serves the hospitality market, will help hotels around the world process more than $2 billion in procurement dollars this year.

The company expects to hit the $2 billion milestone thanks to a new contract with the Sheraton Amsterdam - the first time in its 20-year history, said Patrick Welch, executive vice president and COO.

Adaco's procurement software is used by over 525 hotels in 52 countries worldwide to process purchases such as food, beverages, china, glassware and linens.

"Business has been very good," Welch said. "We're looking from a standpoint of revenues over last year at close to a 35 percent increase over last year and we've expanded our product offerings."

The company's software helps the hospitality industry monitor purchasing, inventory and operations, as well as procurement and reporting. The company also provides Web-based programs for companies with multiple properties.

With a dozen employees, the company operates from 2,700 square feet on Main Street in Williamsville. Clients include Loews Hotel Corp., Marriott Corp., Hyatt, Sandals Resorts, Four Seasons Hotels and Resorts.

Controlling "annual spend" is fast becoming one of the top issues in the hospitality industry, said Mark Pinsley, who joined the company as majority owner in early 2005.

"This is a major milestone for Adaco Services," Pinsley said. "We now estimate that Adaco Eclipse enables hotels to control more than $2 billion in purchases each year at hotels around the world. We continue to be the 'best of breed' in both purchasing and inventory management."

Founded in 1985, Adaco began an aggressive expansion plan earlier this year. Adaco is on target to pass $2 million in revenues for 2005, up from $1.5 million last year. The goal is to take it to $3 million in 2006, $5 million in three years and $15 million in five.

Plans for 2006 include announcing a new Web-based product; a new retail product for gift shops and golf courses; and the addition of three software products the company is representing for tracking systems; property management; and sales and client relationship management.