Sable hotel supplies company, which supplies hotels to Kataria, the largest hotel chain in China, has raised $8 million in a Series B round led by Chinese e-commerce company Tencent.
Sable has raised nearly $3 million in financing since it was founded in 2014, but has struggled to find a sustainable path to profitability amid competition from other hotels.
The new financing comes as Sable prepares to expand its hotel portfolio, aiming to become the largest supplier of luxury hotel supplies to China.
The deal with Tencent is the latest investment in the hotel supply business, which has seen a series of recent acquisitions by companies that provide hotel and travel accessories.
Last month, Alibaba Group Holding, China’s largest online retailer, acquired Sable for $300 million, bringing its hotel and tourism business to $6.5 billion.
The investment in Sable comes as Katarian Hotel Supply has made moves to diversify its supply chain, including purchasing luxury brands like the $2.9 million Sperry Palace Hotel in Japan.