Today, they are one of the most successful immigrant communities in the United States, particularly in the hospitality industry, where they own an estimated 40% of all motels and hotels in the country.
Gujaratis are an ethnic group from the western Indian state of Gujarat, known for their entrepreneurial spirit, business acumen, and strong community networks. Historically traders, merchants, and financiers, Gujaratis have long been involved in commerce both within India and in global markets. Today, they are one of the most successful immigrant communities in the United States, particularly in the hospitality industry, where they own an estimated 40% of all motels and hotels in the country.
In the Black Community, collective work and organizations have been elusive, whether due to internal, external, cultural or political reasons.
The Gujarati approach to business is rooted in centuries-old economic traditions. These include:
In the 1970s and 1980s, many Gujarati immigrants saw an opportunity in the American motel industry. Here’s how they built a near-monopoly:
Most Gujarati immigrants arrived in the U.S. with limited financial resources but strong communal support. Instead of relying on banks that often denied loans to immigrants, they pooled money through informal lending systems, much like their ROSCAs back in India. Families and friends collectively raised capital to buy motels, reducing individual financial risk.
also read: The Immigrant Blueprint For American Prosperity
Many Gujarati motel owners lived on-site with their families, reducing overhead costs such as rent and staffing. This allowed them to reinvest profits and expand their holdings rapidly.
A common practice was to purchase a struggling motel, operate it as a family-run business, and then leverage the earnings to buy additional properties.
Rather than competing individually, Gujarati hoteliers strategically entered franchising deals with major budget motel brands like Motel 6, Super 8, and Days Inn. By focusing on affordable, high-demand lodging options, they built a dominant presence in the industry.
A significant number of these motel owners share the surname Patel, a common name among Gujaratis, leading to the informal nickname “Patel Motel Cartel.” However, this was less about nepotism and more about leveraging trust-based networks. New immigrants often worked at family-run motels to gain experience before pooling money to buy their own properties.
In 1989, the Asian American Hotel Owners Association (AAHOA) was founded to provide networking, advocacy, and business resources to Indian-American hoteliers. Today, AAHOA is one of the most influential hotel industry organizations in the U.S., negotiating better franchise deals and financial terms for its members.
Collective Wealth Building – By pooling resources, Gujaratis sidestepped traditional financial barriers and built generational wealth.
Risk Minimization – Family-run operations minimized labor costs and maximized reinvestment opportunities.
Skill Transfer & Mentorship – Newcomers received business training from within the community, ensuring a steady pipeline of new entrepreneurs.
Long-Term Vision – Instead of short-term gains, Gujaratis focused on sustainable wealth accumulation over multiple generations.
The success of Gujaratis in the U.S. hotel industry is not purely a matter of luck—it is a strategic, structured, and disciplined approach to wealth-building that other communities can study and adapt. By fostering cooperative investment, community knowledge-sharing, and reinvestment in key industries, economic success can be achieved without relying solely on traditional financial institutions.
Would a similar model work for TUEPAC and Black-owned businesses? The answer lies in structured collaboration, strategic capital pooling, and reinvestment in high-growth industries. The Gujarati example proves that economic power is built, not given.
