◼ ECONOMICS Bloomberg Businessweek May 18, 202029PHOTOGRAPH
BY
JOHNATHON
KELSO
FOR
BLOOMBERG
BUSINESSWEEK.
DATA:
AMERICAN
COMMUNITIES
SURVEY
THE BOTTOM LINE Motels and budget hotels were a source
of reliable profits for Indian immigrants, helping them climb the
socioeconomic ladder. Now the industry is in turmoil.Pawan Dhingra, whose 2012 book Life Behind
the Lobby delves into the experience of Indian
American motel owners. “One of the ways you can
measure their success is not just in terms of income,
because the incomes aren’t very high, but it’s the
ability for most of these families to put their kids
through college, which in America is one of the
main avenues you have for financial mobility.”
Indian immigrants began arriving in the U.S.
in numbers during the 1940s to work as field
hands on farms. After putting down roots, many
went into business for themselves. Starting in
California, they began opening motels and bud-
get hotels—and in a few decades came to dominate
the business. As of 2018 there were almost 7,900
people of Indian ancestry working as lodging
managers in the U.S., according to the American
Communities Survey.
Bipin “Bobby” Das, who arrived from England
about 40 years ago, says he was inspired by the
success of other Indian migrants. “Everybody
was climbing the ladder to better support their
family and to have a better lifestyle, to build the
American dream,” he says. Over four decades, the
61-year-old Das has operated motels in Florida,
Georgia, Indiana, Ohio, and Texas. The money he
earned allowed him to put his three sons through
college and paid for a five-bedroom home for him
and his wife near their Studio 6 in Cincinnati.
Now the occupancy rates at their two motels
are down to the single digits, and Das, who weath-
ered the Sept. 11-induced downturn in travel and
the Great Recession, says he’s never seen the indus-
try this fragile. “Nobody’s ever experienced that in
our generation or your generation, and it’s very dif-
ficult right now,” he says.
Over the years, many Indian Americans have
transitioned from independent owners to franchi-
sees. Franchisees pay upfront fees that can range
anywhere from $15,000 to $45,000 and vary with
the number of rooms in each property. Companies
also charge royalties and fees for marketing and
other services.
Patel figures he pays 10% to 15% of room revenue
to his three franchisers, all of which have offered
short-term relief from fees. While he’s grateful, he
points out that if he were on his own he’d have
greater leeway to cut costs to compensate for the
collapse in revenue. “Being independent, you have
freedom to do what you need to do to find ways to
save money—doing everything yourself, not requir-
ing staff, and keeping things simple, like not having
to serve breakfast,” he says.
Das says Motel 6, which is owned by G6
Hospitality, is giving him a break on royaltyand marketing fees at his two properties. Also,
Motel 6 and some other brands have offered to
help franchisees negotiate occupancy agree-
ments with local and state governments looking
to rent out rooms to quarantine or isolate individ-
uals who have been infected with the virus, says a
G6 spokesperson.
Patel and Das have been able to tap funds
through the Paycheck Protection Program. The
program, which was part of the $2.2 trillion rescue
bill Congress approved in March, offers loans that
automatically convert into grants for small busi-
nesses that refrain from doing layoffs.Despite the assistance, retaining staff has
proved more difficult than anticipated, says Patel.
Several of his new hires for the new property in
Brewton never reported for duty or quit shortly
after starting. He blames the enhanced unem-
ployment benefits Congress approved as part of
the rescue. “It’s like they’re almost content right
now,” he says.
So every few weeks, Patel has been making the
four-hour drive from his home in Fayetteville, Ga.,
to Brewton to help out with such chores as vacu-
uming and making beds, because, as he says, he’s
“pretty well versed in housekeeping,” thanks to
his upbringing.
“We are a very resilient community,” says the
father of two. “But it could all be wiped out by this
virus. Ground zero. Start from the beginning. And if
we did it once, we can do it again.” � Khushbu Shah◀ Patel at his Country
Inn & Suites in Fairburn