‘Meeting the future head on’
LONG BEACH, CALIF.: Young Indian-American hoteliers learned their first lessons in hotel management from their parents. Now they go to Wharton or Harvard or other Ivy League institutions to make sure they have the skills to run not just the medium- and small-scale chains they already may own, but also to branch out to upscale hotels and to other countries.

They aired their views at the future hotelier’s conference, titled ‘Meeting the Future Head-On,’ at the Asian American Hotel Owners Association (AAHOA) annual convention held here.

“Hotel business is like riding a bike. Once you have it, it’s for always. When my parents trained me ----- from cleaning the toilets to sweeping the car park with my mother ----- they were not just getting the free labor, they were investing in their future,” says Kanuja Champaneri, who, along with her husband, is now venturing into “boutique” hotels ----- exclusive high-end properties. Dan Patel, a first generation “accidental hotelier” as he calls himself, got into the business because he did not work for anyone else, a condition most immigrants prefer.

Vinay Rama, who was educated in India but went on to study hotel management at Cornell University, Ithaca, said his family had a great impact on him as he grew up. He wanted to be a drummer or a football player, but realized that he would fail miserably at both these endeavors.

“I decided to go to school, instead of just jumping into the family business. I would have had the same strengths and weakness and wouldn’t have added any value to the business. This (college degree) ensures longevity to the company.”

When he graduated in computer science from Atlanta in 1987, Dipan Patel found a soft job market. So he joined Days Inn as a reservations assistant. But with the mentorship of Greg Gasselly of Days Inn, he went to Cornell. He returned to become a successful broker with Insignia.

Neil Shah chose to return to his family’s business, Real Estate Investment Trust, a public company, after going to Wharton School of Business and Harvard and working in a finance company.

“As I searched to see what would be the motivating factor in working hard, I found building a great family company was a more motivating factor than being a banker,” Shah maintained.

Second-generation hoteliers believe they face a more complex and technology-sensitive world today and that the hotel business, which was never just about handling the front desk and reservations, is now about that 300-pound gorilla called the “hospitality industry,” with all its investors, insurers, builders, furniture makers, payroll companies, you name it.

But it’s a misconception to think that hotel business is all about “work work work,” says Dan Patel, who has decades of experience to show for it. “That’s absolutely not true,” says Patel, who is a former chairman of AAHOA, “We are making time to go to all functions, events. The flexibility of the hotel industry is something that a 9 to 5 job does not give you.”

Whether this next generation of Indian-American hoteliers will take up the challenge of going international is still debatable, panelists said.

“It’s not impossible, but it is difficult,” said Shah, “Our parents did it so it’s not impossible. But the U.S. is such a large market, and Canada as well. So, maybe it is less likely we are going elsewhere. But for those working on brand hotels, it’s possible. Brands are going all over the world. But the United States is a great place and great opportunities are still here.”

Rama believes opportunities abound in developing countries. “There’s a lot of potential when other developing countries improve their infrastructure. I don’t know about China, but India has either very good or very bad hotels and there’s no in-between. With the highway system being built, we can build all these Microtels at every exit,” he enthused.

It is not just about going outside the U.S. where the future lies, maintains the younger generation. “It’s very realistic to think that the second generation will go into full service hotels. It’s riskier, its harder to cut costs ----- lots of challenges, but the second generation will have more resources and better relations with franchisers,” Rama contended.

And not to forget the other vast businesses within the hospitality industry. More and more Indian Americans are getting into supply industries like furniture or glass, or décor, a veritable chain of cottage industries where value-added services offer the opportunity to these savvy Indian Americans to grab market share and differentiate themselves, said Champaneri.

Dan Patel, the oldest in the panel, re-emphasized the need to go to business school. “You have to go to business school. Now, after 20 years I am going into full-service hotels and I don’t know anything about F & B (Food and Beverage), or meeting places. I’m glad my son decided to go to school.” “The first generation did not have the resources or luxury of time ----- to go to school. We have it, so why not,” said Rama.

“What our parents have done is a testament to their skill and intelligence,” said Shah. “What differentiates us is our shrewdness. My father was going through Continuing Education at the same time I was there. It allowed him to systematize knowledge and taking it to a broader level to build a portfolio of 20 to 30 properties, or to other businesses. We (second generation) want to be professionals ourselves instead of employing a management company. We are taking the owner-operator tradition and professionalizing it.”

Dipan Patel, however, felt it was important that children of hoteliers should experience the outside world. “Before you take over your parents’ business, you must go out and cut your teeth on other businesses,” he stressed. “Parents should force their kids to work elsewhere before they take over. It also gives them a sense of choice ----- that they (the children) have other options. It preserves self-esteem as well.”