njibhai Desai

In the early 1940s, Kanjibhai Desai was the first Indian motel owner in the US.Today, Gujaratis own over 60% of all the motels in the US.Here’s the story of the Patel Motel Cartel.??Following success:Gujarati people are known for three things - an entrepreneurial mindset, hardworking nature and a close-knit community.When the early Gujaratis moved to the US, they started looking for new business avenues.Even by 1960, there were barely 12,000 Indians in the entire US and even fewer who were doing business.By then, the word about Kanjibhai’s success as a motel owner was the talk of the town. And every enterprising Gujarati wanted to try his luck in the motel business.??A simple business:Most Gujaratis who came to the US didn’t have a lot of money, formal education or understanding of the English language. Since they weren’t too thrilled about getting a job, starting a motel business seemed like the only viable option.The idea was simple - buy an old rundown motel, cut all unnecessary costs and make money.Running was motel was a cash-rich business. Even if the motel was at half occupancy - you could make a decent profit.But how did they get the initial money to get things off the ground?????Supporting community:The Gujarati community is really helpful of fellow enterprising members. Giving interest-free loans without collateral and sharing their own learnings from running a motel to help their fellow entrepreneurs.??Optimising for profits:Once the motel was bought - the first thing they’d do was move in with their family. This had a lot of benefits when it came to optimising their profits.Families pitched in and helped with running the motel.They not only saved a ton on rent but also didn’t have to pay anyone to help them run the motel. It was a win-win.Unlike most American motel owners who’d put up a ‘No Vacancy’ sign up at night, they could accept guests 24x7.More guests, more money.??Using profits to buy more motels:They’d first use the money they made to improve their motel and then buy more motels.Since running a motel was fairly simple and straightforward, they’d bring more family members into the US and help them run the new motels.Repeat this cycle for a few decades and you can start to see why Gujaratis are the ones dominating the US motel industry.