I’ve been staying in a lot of cheap motels around California, Arizona, Utah and Nevada lately, and I’ve noticed that the overwhelming majority of them seem to be run by people from India, even in really small and remote towns that are like 90% white.
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This not a trend I’ve experienced
Gas stations too
I stayed in such a motel just outside KC on a trip to Denver, and not only did I have a Gideon’s Bible in the nightstand but also a copy of the Bagavhad Gita, which was a first for me. Not one but two religious texts to ignore
I assume they’re good entry level businesses, much like 7-Eleven franchises.
O-1 visa
They bought them. They can often live on site with their entire family if they do all of the housekeeping it keeps costs down it’s a good way to build money in America.
https://yourmileagemayvary.com/2024/02/18/why-so-many-motels-hotels-are-owned-by-indian-americans/
https://www.npr.org/2012/06/02/153988290/life-behind-the-lobby-indian-american-motel-owners
It’s the same with gas stations.
There’s a large support system among Indians for small businesses i. e. they can get loans from each other to get started.
The Patel family.
I’ve wondered that myself! A lot of mid range and low-end hotels were owned by Indians in my hometown (south east Alabama), even decades ago. In fact my sister’s best friend’s family owned a few motels, when I was in middle school in the late 70s early 80s. And then in the early 90s, I got a front desk job at a new Howard Johnson that an Indian coworker of my mother’s opened.
In my current area, they also own many of the gas stations.
Low barrier of entry, and they can live in one of the units.
Hence the saying “Patels own hotels”
They almost all have the last name Patel
It’s not just cheap ones. I think literally, 40% of all american hotels are owned by people named “patel” alone.
It’s because in their native country, this was the merchant caste. They were literally born to be entrepreneurs.
A lot of people who move to other countries from India, or moved in the past (or their parents did) are small business people – shop owner/operators, etc. A hotel is a small business, so this often fits their skills and resources. Like running a small shop, a small hotel is one where it’s much easier to run the business with a small profit if you effectively pay yourself little, and if you have family to work in it for effectively low pay too. Many small shop owners, Indian or other, work long hours and if they had to pay someone the going rate for those hours, their business would not make money. So having a mindset where they’re willing to do that, and a family – wife, and maybe children, or even siblings and cousins – willing to do that because the business is owned by the family, makes them more likely to succeed.
tl;dr Indians are often willing to work long hours in service businesses that they own so they succeed at running a cheap low-end hotel.
Those motels and stores and gas stations are usually franchises, they have a reasonable buy-in, with the motels/hotels, it also includes housing, It’s a popular choice for new immigrants with investment money (often a degree that isn’t instantly transferable to be certified in the US). This isn’t new, there’s a 1991 Denzel Washington movie, Mississippi Masala, that’s about his relationship with a woman whose Indian immigrant family owns and runs a motel.
There’s preferential immigration status for being involved in management of a business in the country. By investing in a business, it’s easier for foreigners to get citizenship. How do these people get the money for it?
Their families are typically a higher social class in their own country. They fund them because they’re in some way the black sheep of their family, and by sending them to the US, they do not cause their family social embarrassment.
This is actually in historic precedence for the US. The youngest of the merchant class in Europe usually would not have an inheritance, so the their family would finance them to the colonies so that they would be able to make their own way.
This is a real phenomenon, often nicknamed the Patel Motel Cartel.
Essentially, Indian immigrants will buy and operate a motel. The family often lives on site and does all the work themselves. Eventually, they’ll make enough money to buy a bigger, better motel or hotel franchise, and sell the original business to a relative. Gujarati Indians own something like 40 percent of the hotel/motels in the U.S., and something like 80 percent of rural/small town motels in the U.S. are specifically owned by Gujarati Indians with the surname Patel
I’ve tried to avoid Patel Motels for 40 years. Some things are worth spending a few bucks more for.
I’m not blaming them for the rise in bed bugs, athlete’s foot or impetigo, no, I am blaming them.
This is definitely enough of a trend on the East Coast and Midwest for it to be a mild stereotype, though not really malicious in my experience.
My guess is, much like other businesses, it becomes something where once one group gets their foot in the door, it’s easier for others to follow the model. That’s probably what I would do if the situation were reversed.
I think hotels/motels, in particular, offer a combination of built-in housing and a relatively easy business model, once you’re able to scrape enough for the property. And much like convenience stores and gas stations, there are a lot of them located in less-than-desirable areas, so if you’re willing to do business in those places, there’s less competition. The fact that most immigrants from India seem to speak English probably helps as well.
I googled it and found this article, which goes into more depth about it.
https://yourmileagemayvary.com/2024/02/18/why-so-many-motels-hotels-are-owned-by-indian-americans/
They are all from one state in India called Gujarat. I have heard these people referred to, by other Indians, as “the Jews of India.” Being located on the upper west coast of India on the Indian Ocean, they have a long history of being merchants and have spread themselves far and wide. You will find Gujaratis in Tanzania and Kenya and the UK and all over the US.
They have a strong network and system of loans so that they are able to buy businesses like this with the help of other Gujaratis. They also value ownership above having a job, so they own motels, liquor stores and convenient stores. These are the tried and true businesses they know, so they continue buying them and loaning each other money to start them.
https://madrascourier.com/insight/how-gujarati-patels-took-over-americas-motels/
It’s always a Patel
They own all the gas stations in some areas too.bI’ve never looked too deeply into it but I’m pretty sure it’s just a natural result of wealthy more educated people coming here for job opportunities, and then over however many decades all that doctor money gets used to set up family with various other businesses. (Making some generalizations here obviously, but not meaning anything negative by it, that’s just the pattern I’ve observed.)
Those cheap motels that you stayed at are either privately owned or most likely franchised. A lot of business minded Indian people operate chains like Econo Lodge, Red Roof Inn, and Days Inn. They are relatively cost effective to maintain and the corporation usually helps the franchisee start their business. You’ll also find many gas stations run by Indian people.
How come they own a lot of the off license shops in the UK?
A lot of times you’ll see certain ethnic communities dominate a particular industry. Often it’s because new immigrants come over and work for family or friends in the business, learn the business, and then have the knowledge and industry connections to buy and run their own business. Indians seem to be associated with low end chain hotels, Koreans with dry cleaners, Vietnamese with nail salons, etc.
I say good for them. They’re working hard and trying hard. I love the determination.
They bought them. They’re almost all Gujarati with the last name Patel, it’s a popular stereotype – “the Patel motel cartel”. It helped support immigration for them – solid cash flow, the family could live on the premises, no one else wanted them, and with hard work, they could make enough money to upgrade and could sell the original business to someone else looking to do the same, plus they have a strong network and system of loans to each other.
Although not limited to those named Patel, wait until you see what the coffee shop chain Tim Hortons has become. Basically entirely Indian. Not a word of a lie the Canadian govt (Hortons is bigger in Can than the US) even has an official immigration program that allows franchise owners to import coffee servers (and until last year their spouses and unlimited kids) from primarily India but also The Philippines. Program is called LMIA and it’s total fraud from top to bottom.
Add Washington to the list! I wasn’t even staying there but they had a shower facility (for pay) for campers and truckers. It was like 6$ for 5 min but so necessary
Running a hotel is a 24/7 job….. Most find a better paying job with way less hours.
The EB-5 visa requires $1,000,000 investment in a US business for entry.
Older roadside motels, who’s popularity has been waning since the growth of the interstate system fit the bill nicely, as most of the business value is in the real estate.
The Patel clan has locked into this keenly. You buy a business, bring the whole family, and when the kids finish medical school, sell it to your cousin/nephew/arranged son-in-law, and he brings his family over. Process repeats.
A lot of money available in loans to minority small businesses owners
It’s hard to imagine now, but direct capital investment into a business was an accelerated path to legal immigration status, green card, then citizenship.
It’s a fantastic way to build generational wealth! Lots of poor families will move here, work labor jobs, then eventually buy the business and use to to build lasting generational wealth. I live in a predominantly Indian area, and while some came over for IT/Healthcare jobs, many came and worked in hotels, restaurants, or dry cleaners and saved until they could buy their own, and send their kids to a good college/university, while building lots of wealth. They would then bring family members over to expand their business(es) and create a whole community.
They buy and sell to each other and the next set of immigrants. Loan networks, etc.
Look into how Chinese restaurants exploded. Similar process.
I stayed at one in Orange county and it was weird. Had me sign a release, the room was dirty. I then asked to cancel so I could stay elsewhere and they were difficult to deal with. I went to a Hilton and paid a bit more but it was much nicer.
It’s a cultural way of immigration they’ve been doing for decades. They pool money as a family or group of families and buy a business and use it to sustain the family or group as they come over. Then they use the capital to help another group or family do the same thing in the same business. It’s why so many owned 7/11 franchises at one point
It’s an easy and cheap way to start your own business.
I often wondered why so many donut shops seem to be owned by Asians, and ownership seemed to change periodically.
I was told, not sure if true, but great scheme if so, that it works like this:
A small business can only show a loss for more than 3 out of 5 years, then no longer qualities as a business.
Person 1 opens shop, operates a few year using the 3 out of 5 rule.
Sells to Person 2 ( maybe a cousin or other relative, 3 of 5 rule resets…. and this continues.
Remember an operating loss doesn’t mean someone didn’t make money, just the business didn’t make money. Family members may have been paid well to “work” there.
There are also ways to hide cash sales.
Wish I had been smart enough to do this!
I have first-hand experience with this. In the 70s I worked for an international hotel franchise. South Asians, Pakistani and some African nations were buying small, plain motels in the Midwest like crazy. One family member would come to the US and buy the property and set up shop in the manager’s unit. Soon more and more of that family would get their paperwork and come to help. In almost every case those motels were improved rapidly and they used the resources of the franchise to their advantage.
A large number of the owners were named Patel. The franchise staff would transfer a call to me saying that they couldn’t understand The Patel’s accent and I’d try hard not to embarrass them as I learned their accent. They had to deal with a lot of bigotry amongst staff but very rarely were they denied a franchise in these small towns.
The small towns were often very rude and bigoted to the new owners. I’d get calls constantly from other motel owners and town staff telling me to rescind theirs membership. Guests would contact headquarters staff to complain about us shipping more hard-Rs to dedicate upon the land. But these motel and hotel operators just hung in the, expanding their operations and improving the town.
I’ve never since been so proud to be involved in a business change. These were positive, loving and persistent folk that did everything to help their family and community. It’s a joy to see your question and to be able to share my experience.
I believe you were referring to the Patel Motel Cartel.
Not just economy motels, they have mid and high end now too. On the mid and hi end they are not the face, they’ll have a management company run it.
My father used to sell a lot of motels in the Midwest as a real estate broker, back in the 80s and 90s. So many Patels…
First, the family could easily live on the property in the manager’s apartment.
Second, there was a network of established immigrants who Paid It Forward, crowd funding the purchase for a new owner. (My father remembered the stacks of checks used to buy the property.)
Third, I don’t know if the EB-5 visa applies to the purchase of old properties, but the requirements are much lower for rural areas. I think 5 people have to be employed?
Fourth, it doesn’t require a lot of skill. The learning curve was a ramp …
Somewhat wealthier Indians lately have been coming to the US and buying businesses to run with their families. Where I live they have bought every business in town aside from a gas station and the gun store. The motel, the convenience store, the beer distributor, the other gas station, and even the mechanics shop were all bought by Indian immigrants.
IIRC they get loans from the federal government to buy small businesses.
Look up the Patel Motel/Hotel Cartel
It’s the same thing with convenience stores and real estate. The Indians have been buying out everything recently.
The US gov gives low/no interest loans to them that are unavailable to citizens.
Akaash Singh has joined the chat.
It’s one big family, the Patels. https://madrascourier.com/insight/how-gujarati-patels-took-over-americas-motels/
When I was a kid in Chicago, all the diners were owned by Greeks. I liked to imagine Greece as wall-to-wall American diners.
Now I like to imagine northwestern India as nothing but cheap motels, with every family living in their own motel.
Your perception is correct, though. I used to sleep in a motel every night, for years, because of my job. I’ve slept in motels in every state in the lower 48. It was a rare motel that wasn’t owned by a Patel.
I’ve literally been halfway across the US when a Patel saw my ID while checking in. He knew a Patel family in my hometown, in fact it was his uncle or cousin IIRC. It’s real.
They invest in real estate and probably have family members helping with labor etc
For the same reason the Cambodians own many donut shops….they’re accessible businesses and they’re good at it.
Buy a business, get a green card. Cheap motels and convenience stores are inexpensive.
OYO has taken over, especially since they bought Motel 6 last year.
The way it was explained to me is that things like C-stores, motels, laudramats and the like generate immediate income. Motels offer the added benefit of providing living space. Many motels have a manager’s apartment but even if they don’t you can live in one of the rooms and then almost 100% of your living expenses become tax deductions
Patel Motel Cartel
https://www.nytimes.com/1999/07/04/magazine/a-patel-motel-cartel.html
Just like convenience stores they can leverage family members for free (or very low cost) labor.
Immigrants often take advantage of opportunities locals often don’t want to be involved in. They work hard and succeed.
Many Americans believe the American dream is dead. We all want high paying jobs where we can live comfortable very quickly.
However, Indian people are hard working people willing to buy/open small businesses and show the dream is still alive.
No idea. But the only motel 6 I ever felt safe in was in NorCal and ran by a wonderful Indian family. I hope they’re doing well! The headboards for the beds were massive prints of Mt Shasta and surrounding wilderness. They were absolutely stunning
My husband is a plumber and his company does work for some of those cheap motels. He hates going there every time because they are badly run, and attract the worst types of humanity. Another plumber who works for them, got robbed and a lot of his equipment stolen while completing a job there. The plumbers fight over who has to go. No one wants the job.
One of the Patels running the one of motels that he recently did work for said that everyone in the family has to do their time running the motel on site. He absolutely hated it and all the scuzzy undesirables that took up residence there. He was completely disgusted and ready to be done with it. He said he was ready to pass it to the next person who had to do their time.
to reliably immigrate here, you can agree to invest money into a business, like a million dollars or somewhere around there. businesses that only cost 1 million to get going are small businesses like motels.
Why not? We all gotta make a living somehow.
Business grants i think contribute
They do the same thing Chinese families do. Spanish families are similar but not with businesses, instead with skilled labor. Indians and Asians come here and build a business with their family, or multiple families until that business has become successful, then they open another one. It’s called the American dream because they are living the shit out of it.
Hotel, Motel, Patel.
And most of them are named Patel… There is an explanation in Paul Theroux’s Deep South.
Indians absolutely dominate the small time hospitality market. It’s a great immigrant story.
I did some work for one here in a previous job long ago. They usually fit very well for a large extended family operation.
The one we worked with had several rooms set aside for the family to live in, and the family then filled pretty much all the jobs at the hotel.
So they had really cheap housing and guaranteed employment for their family, as well as a cheap labor force to run the hotel.
Same thing with Cambodians and donut shops, and Vietnamese nail salons. It’s an established community and niche industry of people who trust each other and can share resources
Not just Indian, almost always Gujarati
They all named Patel.
It’s industry-wide.
If you look at the “tales from the front desk” sub, you’ll see them talking about scammers calling and asking for Mr. Patel because so many hotels are owned by a Patel.
Did they steal Americans job?
Lots of Indians with small motels and 7/11s. Seems like a good entry point for immigrants to own a small business.
I heard a podncast about one of the cheap motel chains actually help them get business loans.
They are willing to work long hours for very little money.
Most times the whole family is involved in their endeavor.
The 4th word is the answer