Go 15 miles west and you'd find a motel run by his cousin. ''We Patels, we Gujaratis, we don't like working for other people.'' There are some 22,000 hotels and motels owned by Indians across the US, togethervalued at $128 billion. Sign up today for industry news delivered to your inbox. Thanks for the info. It is natural for us to be in the lodging sector.'' With his support, a bank loan and some savings, her family bought one of budget motel chain Motel 6s properties in Tyler, Texas. I didnt book an air bnb or bed and breakfast, I booked a suite at a hotel. Indians like him were everywhere, especially in places like Huntsville. They are all beautiful. '', In the earlier days of the motel phenomenon, Indians tended mostly to buy mom-and-pop establishments. Franchisors also offer programs for new owners to learn the business of operating a hotel, Guichardo says. And unlike the Hiltons or Marriotts, the Patels are not all related, despite sharing the same surname: Patel represents a farmer caste, since they usually tended the land or were the head of their community. ''If my dad had enjoyed the fruits of his labor, I'd have been in trouble. 1,000 independently owned and operated hotels closed in areas along the . Today, the A.A.H.O.A. They managed to do this by living and working in their motel with their extended family helping to manage it. ''Why shouldn't I be here?'' You also have the option to opt-out of these cookies. But youre right; the heritage of whoever is running any establishment has nothing to do with the quality of said establishment. By the 1980s he and his two sons were running several motels and hotels in California, and now, four years after Patels death, his granddaughters are taking the family business forward. They cant live in those. ''It was not hard for us to do.''. Why not hardware stores, pet shops, drugstores? And being quite smart can happen to anyone, regardless of nationality. I don't want to make a racial thing out of this, but there isn't anyone who can match us for effort, dedication, stamina on the job.''. Look a bit closer and the picture is even more arresting: about 70 percent of all Indian motel owners -- or a third of all motel owners in America -- are called Patel, a surname that indicates. You get what you pay for, regardless of who owns the place. (A simple explanation of Indias caste system is that its a hierarchy that divides people according to their profession.). 74 State is the first Capital Region hotel that the company has acquired, said Rakesh Patel. 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The reasons why they go into such a business are as folllows: Easy to set up and operate, you wouldnt need sophisticated language or business skills. More Patels, like Dilip Patel, seem to be opting out of the business as their children and grandchildren are integrating with mainstream America and choosing alternate careers. The Global Hyatt Brand is owned by the Pritzker family. Why are there so many Indian Americans running gas stations? You can look at their website yourself if you wish, but what impressed me was the diversity of their leadership. In time, many would move to the United States, joining an unusual wave of well-educated Indian immigrants to this country that had begun in the mid-1960's -- doctors, academics and professionals -- and peaked in the late 1980's. An article from 2000 in the Chicago Reader traced the origin of the Patel motel phenomenon to California. For Chirag Patel, Mehul Patel and Mital Patel, it's a little bit business and a little bit. The next time youre staying at a hotel, make sure you rummage through the bedside draweryou may find a copy of an ancient Hindu scripture, the Bhagavad Gita, next to the Bible. How that came to be is pretty interesting, After watching this video, I HAD to find out more, especially about this Patel Motel Cartel.. Its laughable, Aakar Patel, a politicalcommentator and head of Amnesty Internationals India office,told the LA Times. At the time of my midmorning visit, Lata was in slacks and a shirt, addressing a female client as ''honey'' and buzzing about the front desk with instructions for a dozy young cleaner. Like this post? Accounting for 34,260 hotels across the United States, Indian Americans owned hotels account for 60 percent of all hotels in the U.S., according to a new study conducted by Asian American Hotel Owners Association (AAHOA) in partnership with Oxford Economics, a global leader in forecasting and quantitative analysis. Indian Hotels Company Ltd (IHCL) is the largest hotel chain in India and the company is owned by the Tata group. But a popular. Rather than owning the other 99% of its hotels, Marriott holds management agreements with many of these properties, and licenses the Marriott name to franchisees. In the mid-1970s, the community began migrating from Africa and Asia to North America. A senior figure in the ''Indian motel brotherhood'' -- his words -- puts it this way: ''O.K. Vilpesh Patel's father, Jayantibhai, was one of those who had to migrate against his will. Big trouble. For long, India has attempted at counteracting the impact of its ancient caste system through quota-based affirmative action for economically weaker communities. Or the Arabs in greater Detroit, who have a stranglehold on gas stations, or the Vietnamese who monopolize nail salons in Los Angeles. The market value of properties owned by association members is $38 billion. But there were other, less romantic factors keeping Indians out of the franchise motel chains. Sun Development, led by Bharath Patel, has a portfolio that includes brands like Embassy Suites, Hilton Garden Inn, Hampton Inn & Suites and Holiday Inn Express. The Patel community comes from Gujaratmostly central and southern parts of the statein India. The Patels said their . Its so strong over the already potent incense smell( to hide the dampness and mold because the ac is turned off in most rooms) that we are going to check out early on a non-refundable booking. These are cities where a franchise owner might need to differentiate the product in view of competition from independent brands that are not affiliated with any major hotel group.. ''), runs the Budget Inn in Jasper, Ga., a mountain town of some 3,000 mostly white inhabitants about an hour's drive from Atlanta. He related how he arrived in America in 1969 and noticed how ''our people'' were buying motels; by 1973, he had bought one himself. Youre right the background of whoever owns the hotel doesnt and shouldnt matter. They pay $725 million a year in property taxes and employ 800,000 people. (Chan Patel did not respond to a request for comment.). However, there are some Indian Americans , because they like to own their own businesses go for running gas stations and convenience stores. Hardik Patel, a 22-year-oldgraduate,is leading the movement and is on an indefinite hunger strike until the state government relents. I asked about the book in the room which host said was about their religion, (not a giddeons bible) I love learning new stuff, and they graciously said take the book. '', Pride in the conquest of a niche has for some evolved into a curious and not very enlightened machismo. They gives Indian run hotels a bad image overall. Do NOT follow this link or you will be banned from the site. If it's a motel with less than 60 rooms, the likely buyers we identify will be Indian 98 times out of 100,'' he told me. The last decade has seen a continued shift in hotel ownership. Sheldon Adelson. The Patels have a reputation that extends far beyond their home in the western Indian state of Gujarat. However, this has happened through incredible expansion of AAHOA member portfolios not through leaving lower-priced hotels. My brother may continue with ours, but hes too young right now.. Of this nearly one-third have the surname Patel - a popular one among Indian Guajaratis. If we survived Idi Amin, a couple of redneck motel owners arent going to bother us much. What percentage of hotels are owned by Patels? They did this not merely to save money, but also because thrift is part of a larger moral framework, one that regards all nonessential expenditure as wasteful and unattractive. Feb 18, 2007 at 12:00 am By RICHARD QUINN The Virginian-Pilot VIRGINIA BEACH - It's impossible to know if the Tropicana Resort Hotel really is the dirtiest hotel in the country. I was curious about this. Why did the Gupta Empire collapse 3 reasons? The 1940s were a time when native-born hoteliers were looking to get out of their motel business because they were either becoming too old to run the day-to-day operations, or their children werent interested in it, Dhingra said. Jay Chaudhry I cant remember which hotel but I remember her a truly stunning Indian girl in her early 20s around my age too. By the 1960's, Pramod estimates, there were still only 60 or 70 Indian-owned motels, mostly in California. The dirty secret is that in the 1970s, banks had foreclosed on older, smaller, roadside economy properties that were not profitable, said Steven Belmonte, the chief executive officer of Vimana Franchise Systems, a hotel franchise that works closely with Patel hoteliers. Their kids were not interested in the business.'' An uncle had a place, too, somewhere in Georgia. Saturday, July 8, 2023 Best Employers in N.C. Interstate 95 was just opening in the flatlands of eastern South Carolina, and gas at the local Gulf station was $1.05 a gallon. The Patels have a history of mounting large agitations. Frankly, I find the history of how so many Patels run hotels and motels charming. 7,362 likes, 18 comments - RankBro Media (@rankbromedia) on Instagram: "Patel Hotel Owners in the USA | Hotel Business According to a report by the Asian American . has 5,000 names on its rolls, plus seven full-time staff members and an annual budget of $4.5 million. The cookie is used to store the user consent for the cookies in the category "Other. I remember there being a lot of discrimination back in the 1980s, Belmonte said. And the Patels themselves seem to believe it, too. ), The Patel motel and hotel network, also called potels, is well-known within the industry, even if few people talk about it and the details of its history are murky. It's a generation thing,'' he says. ''I kid you not, mate -- the whole town sat out on the porch in rocking chairs.''. Not surprisingly, white competitors, especially in the rural south, have sometimes put not-very-subtle American-Owned signs outside their hotels (I live in Florida can you believe theyre still around, here and there?). They simply wanted independence -- freedom from the web of their extended family, with its pressures to share and to conform -- and the simple pleasure of living as a nuclear family. JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. The Patels could not afford hotels, but small motelsusually financed through their savings or loans from their extended familywere within their budget. There are many different decisions each hotel owner needs to make, whether to affiliate with a franchise or not, what kind of property and customer to target, and how they will market, distribute, and operate their properties. At the time of the article (granted, 20+ years ago), roughly 70% of all Indian motel owners or about 1/3 of all motel owners in the U.S. were named Patel. Maybe stay there? Non-Indian-Americans have been known to own one or the other, as well. But before anybody gushes over what seems like the realization of the typical American dream, one should note the Patels werent set up for success. - At least 1 out of 2 motels are owned by Indian-Americans. Read this first to help ensure it gets approved. (A simple explanation of Indias caste system is that its a hierarchy that divides people according to their profession. ''And it's a business that comes with a house -- you don't have to buy a separate house. in the range of 71 to 76 percent, up until 2019. According to Dhingra, since they have been in the industry long enough, they are slowly moving toward building more high-end hotels and being a part of larger brands. But things have changed, as NDTVs Shika Trivedi writes: One reason the Patels want to be OBCs, believes social scientist Achyut Yagnik, who is based in Ahmedabad, is to get their children into medical and engineering colleges or institutions providing technical education which could make it easier for them to migrate abroad, as well as find jobs locally. 's family owned a marble mine. By clicking Accept All, you consent to the use of ALL the cookies. According to Pramod, his grandfather left his Gujarati village in 1949, at the age of 29, for a better life in America. Mumford, who has been in the brokerage business for 21 years, said that this was ''completely natural, given the track record of the Asian Indians.'' But he was Indian and so am I, and it was our little way of touching base. Evolving immigration laws helped the next wave of pioneers make their mark in the 1970's. Ive stayed in awesome hotels run by India-Americans and flea bag motels run by Redneck-Americans and the ownership standards matter, not the race so much. More than 40 percent of the motels in the United States are owned by Indian Americans, and 70 percent of them are Gujaratis. It began with 160 members. Marriott. "Now we're in danger of losing everything we've worked so hard for.". This website uses cookies to improve your experience while you navigate through the website. Ive been in plenty PLENTY of hotels and even motels owned by Indian-Americans that were just as clean and nice as those owned by non-Inian-Americans. And its a business that comes with a house you dont have to buy a separate house. (this is true when I worked as an occupational therapist in home health (like like a visiting nurse sort of thing) here in Central FL, I had several elderly patients usually of Indian or other Asian descent who lived with their adult children in the hotel they (the adult children) owned. Necessary cookies are absolutely essential for the website to function properly. he said. He also owns another Mercedes and a BMW -- as well as a Rolls-Royce. I was in the heart of a certain kind of Texas -- the kind I'd probably only visit in pursuit of a story -- and the room was a godsend. Though they only set up shop relatively recently, Divya, a 22-year-old psychology major, isnt sure of the hotels fate. This cookie is set by GDPR Cookie Consent plugin. ''There's a thing our parents tell everyone, so don't yawn if you've heard it already,'' says Mit Amin, an urbane 39-year-old who owns the Beverly Hills Inn, a chic bed-and-breakfast in the Buckhead section of Atlanta. But AAHOAs Rogers doesnt see this as the community shifting from motels to hotels. the place for $150,000; the couple cobbled together the $20,000 down payment from their own savings and loans from friends and family. Top 5 Richest Hotel Moguls and How They Got There. Rick and Rikesh Patel own Centerstone Inn in Tuscaloosa, Ala., which is a part of Belmontes Vimana. mostly central and southern parts of the state, in India. About 70,000 were expelled from Uganda by Gen. Idi Amin in 1972, and the majority resettled in Britain. In any case, our motels are American-owned, too. Now his company, JHM Enterprises, operates 23 hotels in six states and one in India. The association was formed, he adds, ''in response to that prejudice.'' Marriott This report will primarily focus on what we believe to be the most important decision a U.S. hotel owner has to make: whether to affiliate their property with a franchise brand or to distribute and market the hotel independently. BOOKS, LOCAL From Surat to San Francisco: How The Patels Cornered The Hotel Business The Patel clan from Surat began their foray into the hospitality industry in the early 1940s. Look a bit closer and the picture is even more arresting: about 70 percent of all Indian motel owners -- or a third of all motel owners in America -- are called Patel, a surname that indicates they are members of a Gujarati Hindu subcaste. After extensive coverage by, But when the first Patels arrived in the United States in the 1940s, they had virtually no experience in hospitality, according to Pawan Dhingra, the author of, The 1940s were a time when native-born hoteliers were looking to get out of their motel business because they were either becoming too old to run the day-to-day operations, or their children werent interested in it, Dhingra said. '', That kind of success has, inevitably, bred resentment in some quarters. So, if the borrower cannot pay back the loan, the issuer can usurp the collateral but not seek more compensation even if it doesnt cover the full amount. Unfortunately, racism is still alive and well. And unlike the Hiltons or Marriotts, the Patels are not all related, despite sharing the same surname: Patel represents a farmer caste, since they usually tended the land or were the head of their community. We believe the percentage of lower and midscale hotels owned by AAHOA members continues to increase, but those same owners are also rapidly developing upscale brands as well.. These cookies will be stored in your browser only with your consent. Analytical cookies are used to understand how visitors interact with the website. The status would make it easier for the Patelswho account for between 15% and 20% of Gujarat's population of more than 63 millionto access education, government jobs and other facilities,. nonprofit organization behind the initiative. They left behind enviable social status; their families employed cooks, watchmen, sweepers, a chauffeur. Its a surname that indicates they are members of a Gujarati Hindu subcaste. Most Indians believe that these people have commerce in their blood. You need to travel a little more, friend. More than 40 percent of the motels in the United States are owned by Indian Americans, and 70 percent of them are Gujaratis. The Patels could not afford hotels, but small motels, usually financed through their savings or loans from their extended family, Divyas family lives in an apartment in a motel and another Patel family. It makes for a staggering 42\% of the US hospitality market, with a combined worth of $40 billion. I have confirmed over 95 hotels and motels owned by related Patels in the city. According to Vilpesh Patel, who was the the owner of the 85-room Flamingo Inn in Windsor, CT at the time, Technically, its easy to run. In the past 25 years, members of the Asian American Hotel Owners Association (AAHOA) acquired more than 20,000 hotels with more than one million rooms. Buying a motel, even one that's in the red, usually requires a substantial down payment, one beyond the reach of most new immigrants. : Patels currently own 22,000 motels and hotels in the United States, collectively valued at $128 billion. They run them better than anyone else. This is so whether you look at Indian motel owners, Korean grocers, Chinese laundries.''. Im quite surprised about the American Owned signs. In February 2021 - just months before the Blossom Houston Hotel was set to open in the spring - owner Charlie Wang should have been completely focused on . Today, the US alone is home to as many as 145,000 Patels, who have come to dominate the countrys motel business. Want to sponsor a post, write something for Your Mileage May Vary, or put ads on our site? But absolutely no one works as hard as we do. Its a quiet invasion. This makes up approximately half of the hotels in the United States, according to Chip Rogers, the chief executive officer and the president of AAHOA. Great! Dilip Patel is one of the founders of Motel Gita and the manager of Sea Breeze Motel in Pacifica, Calif. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of over 91,000 as of March 31, 2019. Property prices were depressed. I knew Indian Americans who ran really sleazy motels, and really nice ones as well. I dont begrudge them anything. He said the company decided to buy 74 State because of its location and its place in a market "that we . Given that the group says about 37 percent of the hotels and motels in the United States are owned by their members, this would mean that about one in every five of these facilities in the country is owned by somebody named Patel. These cookies track visitors across websites and collect information to provide customized ads. But it isn't quite that simple. Hospitality is in our culture,'' he told me. They currently run it as Lone Star Inn. The hotel owner landscape is broad and diverse. For them, the Patels, who had no experience in hospitality, fit the bill. As I was then new to America, I asked him bluntly what on earth had brought him to a place like Huntsville. '', See the article in its original context from. ''The guy wanted $100,000 down payment. Today, traditional commercial investors, both groups and individuals, and banks provide most of their members funding. The British brought thousands of Indians to their colonies there in the last century to serve as laborers and traders. They are also able to tap into their partners familiarity with local market dynamics, which is especially important when a brand is expanding its geographic footprint to new regions, says Guichardo. This modest motel is where Lata and P.J. These companies no longer need to take on debt to buy hotels, which is rewarded with higher stock prices.. The "Patel motel" phenomenon, as it is popularly known, has made a major impact on the American hospitality industry. It's one of three teepee-themed motels in the United States and features. Motels were a postwar thing, and by the mid-70's a lot of the people who owned them were of retiring age. Major hotel brands have led the charge. (Hindus consider gifts of money ending in the numeral 1 to be especially auspicious.) Excerpts and links may be used, provided that full and clear credit is given to Your Mileage May Vary with appropriate and specific directions to the original content. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. Companies that transitioned into a more asset-light strategy found themselves in a stronger position. That, however, is one key to how this particular niche was captured. say they've found their ''American dream'' -- a phrase they used often, and unselfconsciously. That's how he had $50,000 to give me. It brings a lot of value to the table.. Can you blame them? The other Patels run a very upscale hospitality company that features Marriotts, Hiltons and Wyndhams all under one umbrella. If that is so, I asked, how was it that hardly any of these people ran hotels before they came to America? They were usually farmers. Hasmukh P. Rama, 51, is the chairman of the American Hotel and Motel Association, the trade group representing America's $85.6 billion lodging industry. ''It's all about opportunity and example,'' Rama replied sagely, starting into a speech about hard work. True, the guest is God. POTEL, MOTEL, HOLIDAY INN (SAY WHAT?!) And the English were once the predominant nationality of printers. It doesnt get us down, said hotel owner Mike Patel. It does not store any personal data. As many as 60% of mid-sized motels and hotel properties, all over the US, are owned by the people of Indian origin. So I have stopped avoiding them. Five or ten percent of the Patels here . Dear Whoever Is Doing This At Hotels, STOP IT! The community owns a mix of low-budget and middle-budget hotels, both independently and as part of a franchise. But I'm just enjoying my achievements, right? In any case, our motels are American-owned, too. Traditionally a farming community, the Patels have found great success as entrepreneurs, gradually moving intolucrative businesses than span everything from diamonds to textiles. Patels sleepless nights paid off. How many ways can we attain moksha according to Hinduism? https://www.google.com/imgres?imgurl=http%3A%2F%2Faff.bstatic.com%2Fimages%2Fhotel%2Fmax500%2F267%2F26725402.jpg&imgrefurl=http%3A%2F%2Fwww.motelplanet.com%2Fusa%2Fsnyder-tx-motels.html&tbnid=pF0DTbleyoDVzM&vet=12ahUKEwiE0sbQrs3nAhUR3VMKHcKXCJIQMygpegQIARBW..i&docid=pVReqMlNX8VsdM&w=500&h=332&q=hotel%20%22American%20owned%22%20kissimmee&client=firefox-b-1-d&ved=2ahUKEwiE0sbQrs3nAhUR3VMKHcKXCJIQMygpegQIARBWd&ved=2ahUKEwiE0sbQrs3nAhUR3VMKHcKXCJIQMygpegQIARBW. ''It comes naturally to us. helps them with the housekeeping and lives in another apartment on the property. Owning a motel back then was gritty, unglamorous work, involving long hours, something that the Patels were willing to do. The dirty secret is that in the 1970s, banks had foreclosed on older, smaller, roadside economy properties that were not profitable, said Steven Belmonte, the chief executive officer of Vimana Franchise Systems, a hotel franchise that works closely with Patel hoteliers. 'Patels are maybe the shrewdest businesspeople in the world,'' chuckled Lata Patel, who with her husband, Pankaj (''Call me P.J. The idea of being autonomous was one of the motivations for them to seek self-employment.. Pull off any Interstate highway and look for a cheap bed for the night and there is a better-than-even chance that the motel you will curl up in belongs to Indians. Grace and hospitality comes in all shapes, sizes, and in all cultures, whereever you are or happen to wander. During the past 30 years, immigrants from the same region of India -- most with the same last name -- have come to own more than 50 percent of the country's economy motels and up to 40 percent. ''And why not? We will look at the relative performance of brands vs. independent hotels during COVID, their costs, and their different distribution strategies. ''In some American small towns they think 'Patel' is an Indian word for 'motel.' Of those Gujaratis, three-quarters are named Patel. Indian immigrants and their children comprise about 1 percent of the U.S. population, yet they own roughly half of all American motels. Out of the banks $509 million loans, about 60 percent are for hotels. We have plenty more just like it and would love it if you decided to hang around and sign up to get emailed notifications of when we post. However, unlike ten, twenty years ago, now some of these Indian run hotels are improving in quality. This cookie is set by GDPR Cookie Consent plugin. Since they had an established motel clan, the hotel industry had become more easily accessible to them, and more people got into the business. 1.8k. Blossom Houston Hotel, Houston, Texas. Emigrated to Louisiana 30 Years Ago . Please share it! They stayed on and flourished economically after these colonies won their independence. 14 GreenStrong 6 yr. ago What are the differences between group & component? Patels and Amins, however, are not as far apart as Smiths and Browns might be. Marriott owns about 1% of the 7,200 hotels and resorts that belong to its portfolio of 30 lodging brands. Shift in ownership Does perfume smell better on skin or clothes? Theyre also gradually seeping into more higher-end hotels, like Hilton and Courtyard by Marriott. While some of them have stuck to motels, others now own boutique hotels, are part of well-known franchises or own hotels through joint ventures with both Patels and non-Patels. "We have built this up from scratch for more than two decades, literally building each hotel from the ground up," said Patel. ''If we survived Idi Amin, a couple of redneck motel owners aren't going to bother us much. His company has a database of more than 7,000 ''buyer-and-seller prospects'' -- about 1 in 4 of whom have Patel as their surname. Just walking the hall makes me nauseous and my eyes burn. Close. The important thing is that they tended to work for themselves and not for someone else, Dhingra told Commercial Observer. When India got independence from the British in 1947, the newfound freedom and unrest within the country made them assess options overseas. Belmonte said that banks (he declined to provide names) turned to who they saw as unsophisticated buyers to do this. ''I like to live well, to spend money. In 2020, . They may own businesses all over the world. Ninety miles south and there was another cousin in another motel. 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