Pearson New International Edition International pcl tp indd 1

MODERN FRONT OFFICES ISSUES AND TACTICS
Who Owns Small Hotels?
Although they make up less than 1 percent of the U.S. population, Asian-Indian Americans
own approximately 37 percent of hotels in the United States, including half of the nation’s
economy lodging properties, which are typically small. The hotel industry seems to be
attractive to Asian-Indian immigrants for several reasons: operating a hotel need not be
complicated, hotel owners need not have significant proficiency in the English language,
and family members can help. In addition, there can be significant positive cash flow along
with reasonable profits after taxes, interest, and depreciation.
Hospitality is a significant part of the culture of Asian-Indian Americans. An ancient
phrase, “The guest is like God,” suggests their attitude about the business. Hotel owners
work long hours, must learn every aspect of the business, must manage operating costs while
delivering product and service quality, and must reinvest in the business. These are among
the traits shared by Asian-Indian Americans who experience success in the hotel industry.
What’s next? Some observers believe the next generation will acquire larger assets
with bigger developers and will participate in joint ventures with townships and cities. In
doing so, Asian-Indian Americans will continue to play a significant role in the hotel
industry of the United States.
Adapted from Newton, B. 2004. Hotels fuel the dream for many Indian-Americans. The Virginian-Pilot,
July 18.