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The Accidental Hoteliers: How Patels Built an Empire
12 Aug
Summary
- Gujarati Patels own over 22,000 hotels in the US.
- They control an estimated 60% of America's motel industry.
- Kanji Manchhu Desai pioneered this success with a $350 gamble.
Migrants from Gujarat, predominantly of the Patel community, have established a formidable presence in the United States hotel industry, owning upwards of 22,000 motels and controlling approximately 60% of the market. This entrepreneurial success, often initiated with limited resources and strong family networks, began with Kanji Manchhu Desai.
In 1942, Desai, who had previously worked on farms in California, took over the Ford Hotel in Sacramento for a $350 down payment. He fostered a community of Gujarati hoteliers by offering food, shelter, and crucial handshake loans, laying the groundwork for what would become a dominant industry force.
Despite facing racism and discriminatory practices, such as "American owned" signs and difficulty securing loans and insurance, the Patel community persevered. They relied on mutual support, family labor, and reinvested profits to expand their ventures, transforming struggling properties into successful businesses.
The Immigration and Nationality Act of 1965 further facilitated this growth by allowing easier family sponsorship, accelerating chain migration and apprenticeship within the industry. Today, the Asian American Hotel Owners Association represents thousands of these owners, a testament to the enduring legacy of Desai's vision and the community's collective achievement.
