Shilily

Feb 15, 2017

Matrix China leads $14m Series A in Shilili Hotel brand Subscribe to our newsletter Shiwen Yap February 15, 2017: &nbsp Matrix Partners China has led a RMB100 million ($14 million) series A round in Shilili Hotel, a honeymoon-themed chain founded in 2013. The brand – which operates seven hotels – targets young adults with offerings that involve a romance-themed and luxury hospitality experience. These hotels operate in China’s Yunnan province with one property in Guangxi. Shilili Hotel forecast that its annual revenue for 2017 will reach RMB200 million ($28 million). Its previous funding includes a RMB30 million ($2 million) pre-Series A round from individual investor Li Chi and his Co-Power Capital Management Co., Ltd. in July 2016. According to its website, Co-Power is managing a portfolio valued in excess of $600 million. Shilili Hotel plans to use the proceeds to open hotels under two different themes – Love Utopia and Art Hotel – later this year, in addition to establishing an additional 46 to 56 hotels. This includes three Art Hotels and three Love Utopia hotels across China. China’s hotel industry has experienced significant growth, with an ATKearney report estimating it to be a $44 billion business with 2.5 million hotel rooms as of 2013. 2016 saw a number of comparable boutique hotel operators secure venture funding. Chinese startup Xbed, which provides self-service hotels rooms, raised RMB50 million ($7 million) from QF Capital and Gobi Partners in December 2016 while boutique hotel and service apartment brand AtourHotel raised RMB599 million ($91 million) in 2016. All hospitality segments will experience growth for the 2013-2023 period, with mid-scale and budget segments experiencing the greatest growth, with China’s lower tier cities seeing greater growth due to continued demand for meetings, incentives, conferences, and exhibitions (MICE). Travel accommodations will also be driven by the proliferation of high-tech and industry parks. Credit: ATKearney