🏨 Gujaratis dominating the Motels in US

08-12-2021 | 08:00 AM

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My name is Jay Desai and I wish you a very good morning with this freshly baked newsletter.

Let's start with,

Did you know that Gujaratis own 42% of all the hotels in the United States?

Gujaratis, mainly Patels, own a staggering 42% of all hotels and motels in the country with a combined worth of more than $40 billion. Famously called the Patel Motel Cartel, they’ve taken over the US hospitality sector in the past few decades, owning 22K of the 53K hotels and motels in US.

But how did his happen? Let's take a look.

It all started in 1942, when an immigrant named Kanjibhai Desai took over a 32 room motel in Sacramento, California from a Japanese owner who was being evicted to a WW2 camp.

Desai ran a successful establishment, and always kept his doors open to new immigrants from Gujarat. He also encouraged them to enter the hospitality business. It was the perfect business for them. Fluent English isn't required to run a motel, thus being suitable for 1st Gen immigrants. And the business came with a house, so they didn't have to buy a separate one.

What also helped Gujaratis set up their business was the trust they had. They would give each other 'handshake loans' - loans with no collateral, no payment schedule, just pay when you can. Once a family purchased a motel, they didn't require any extra staff. The joint family would manage everything, from cleaning to accounting. Therefore, the hotels were very profitable.

Although they had to face very stereotypical and prejudiced customers, their network slowly grew to where they are today, dominating the motel industry in the US.

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