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Yes, almost every single hotel booking service will pass your credit card to the hotel as it lets them place a hold on your credit card in advance or charge it if you don't show up. Some services might be a bit smarter and let the hotel charge you without letting them see the actual card number, which would be more secure.
Overall I wouldn't worry about it. If you see a fraudulent charge simply block your card and ask the bank for a refund. You as a consumer carry zero risk as long as you notice the fraud on time.