From $20 In His Pocket To Owning 3 Hotels: Shilpan Patel’s Story
Thursday, July 24th, 2008
Here we go with the first edition of Hunter’s Heroes: Ordinary People, Extraordinary Souls.
You may know Shilpan Patel from his Digg-decimating blog Success Soul: Abundance and Simplicity for Mind, Body, and Soul. But did you know that he came to the U.S. with only $20 in his pocket, and worked his way up to owning 3 hotels? I asked Shilpan to share his story with us, and he was kind enough to oblige.
Hunter: Shilpan, why don’t you start off with what made you decide to come to the U.S.? I think that with your engineering background, you could have done pretty well in your native India. What caused you to choose a life over here, and how old were you when you decided this?
Shilpan: My father is a successful businessman. I have seen him working hard everyday to build a respectable business on his own. I could have just stayed in India after earning an engineering degree but I wanted to chart my own course. America is a land of endless opportunities. It was an easy choice when I realized that to chart my own destiny I have to leave home and do what life demands. I was 25 years old when I came to US about 17 years ago.
Hunter: Whenever I hear about someone coming to the U.S. with a tiny amount of money, I always wonder about the practical matters. I mean, you need food and shelter, and $20 doesn’t buy a whole lot. How did you get a foothold? Did you have family and friends over here to help you get started?
Shilpan: Well, I had a close friend who was kind enough to let me stay with him for the first several months. It was still difficult as I’m a vegetarian. I have never had to worry about the veggie food back in India but it was rather difficult in America at least for the first several months. It’s funny. I walked one day to a local pizza shop and ordered a pepperoni pizza with the false assumption that what I saw in the picture was a slice of a tomato. Later when I learned what it was – I laughed at myself for the stupidity.
Hunter: That’s not stupidity, it’s just part of getting adjusted to a strange land. I would have assumed it was a pepperoni pizza, but that’s because I’m so used to it. By the way, everyone, keep in mind that while there are plenty of vegetarian options available in the U.S. today, that was not the case 17 years ago.
Moving on, I’ve never known anyone in the hotel business before. How did you decide that’s what you wanted to do? Was it a family tradition, did it come from a love of real estate, did it come from a love of providing service, or for some other reason?
Shilpan: I always wanted to go into a business, as my father was a businessman. He still is my role model. I found out that lots of Indians owned hotels and for good reasons – it builds equity, it provides tax write-off and for some it also provides a primary residence.
Ten years ago, my oldest daughter got into kindergarten. My wife insisted that both of my daughters have to attend a private school. See, I went to the finest school in my town back in India. Most Indians make sure that their children get a good education. I was working for Johnson & Johnson at the time but my salary was not enough to pay for private schooling. Need is the mother of motivation. We sold our house and purchased a brand new hotel that had a nice living apartment. That was ten years ago.
I used to drive 45 miles to drop our kids off at the private school and then drive another 60 miles to work everyday for almost seven years. My wife would pick them up and make sure that they did their homework on time, etc. We worked hard, very hard for the first seven years of owning our first hotel. I never had any breaks or any vacations. My vacation would be to take friends to Atlanta or Stone Mountain Park if they visit us.
When I look back in retrospect, as crazy as it seems, I’m proud that every bit of effort was worth it. My daughters are very bright and I’m sure that when they chart their own course, they will have gratitude for me and my wife for the sacrifices that we have made along the way.
Hunter: I’m sorry, I’m going to need a minute to process this…
OK, for anyone who missed it, his morning commute was 105 miles for seven years! And when he says they worked “hard, very hard,” I’m sure that’s a euphemism for “way harder than most people could possibly put up with.” I have no doubt that your daughters will appreciate all the sacrifices when they’re old enough to understand.
So, from the time you decided you wanted to own hotels, how did the timeline play out? What year did you start, and when did you buy each hotel? How much time did you have to invest in learning the ropes, as well as actually running the business?
Shilpan: I actually had given hope to buy the first hotel. It’s an interesting story. Ira was the owner and builder of my first hotel. I made a very attractive offer to him as I was determined to buy the hotel but he did not respond. I was disappointed and angry for his lack of response. I had depicted a rather rude image of him in my mind.
Boy, I was absolutely wrong. Several months later, he called me and informed me that if I’m still interested, he is ready to close the deal. I was amused and confused. When I met him, he discussed all the private issues he went through during the time I made him an offer. As he was speaking, I was cursing myself for such a poor judgment of a man who was as nice as anyone I met in this great nation. This experience changed my entire way of thinking about life. He not only helped me establish a relationship with the local bank but also lent some funds to close the deal. It was an incredible experience.
When we took over the hotel, we did not know much about the business. My wife and I were determined to learn and deal with whatever challenges we had to face to learn the ropes. It was a struggle for a while as I was also working at the time. I strongly believe that if you decide to change your life, you can definitely do that. All you have to do is to free up your mind – do not restrict it with the stereotypes. Nothing is impossible if you do not program your mind with restrictions.
Hunter: I really like how your initial perception of Ira turned out to be wrong, and you got to see how he really is. A lot of the time, we judge somebody by a first impression that could be influenced by things going on in their life that we don’t know about. It reminds me of when Randy Pausch said: “Find the best in everybody. You might have to wait a long time, but people will show you their good side. Just keep waiting, it will come out. And be prepared. Luck is truly where preparation meets opportunity.” And this certainly became an opportunity for you, Shilpan.
Now let’s get into some nitty-gritty details. How does someone actually buy a hotel? Do you have to be rich to do it? How much does a hotel cost, and what kind of down payment do you need? How do you locate hotels for purchase and evaluate profitability? And how the heck do you learn how to run them?
Shilpan: No one has to be rich to buy a hotel. There is a prevailing myth that hotels are purchased by rich people. It is true that hotels do require huge capital investment but if you are keen to work hard, you can find partners. In my case, I had 28K when I made the offer. I knew that I did not have enough money as I had lost all of my assets in the stock mania of the mid 90′s. I borrowed some from friends with a promissory note to pay 10% return on their investment. As I said, Ira also surprised me by lending 100K of his own money. I’m still in disbelief.
It’s all due to my strict adherence to honesty and integrity that I learned from my father as a businessman. If you are honest, transparent to your partner, your friends and everyone else – the universe makes a way for your success. I have no doubt about the power of the universe and its positive influence in my life. It takes 20% down similar to a home purchase deal, but as I said with the help from friends and the owner himself, I was able to buy it.
I still remember that day. I was very nervous going to the bank as I had serious doubts about my ability to close the deal. I kept my eyes closed while the attorney was going through the paperwork, occasionally nodding to whatever he asked me without paying attention one iota to what he was saying. I was expecting the deal to go sour. All of sudden I heard the attorney’s somber voice – Mr. Patel, congratulations, you are the owner of this beautiful hotel. Success meets us on the cross roads when we are looking hard for a failure to show up. It’s amazing.
Hunter: I think you just shattered the stereotype many of us had in our minds about all hotel owners being like Donald Trump. How good it must have felt to hear the attorney say those words!
Tell us about a day in the life of a hotel owner. Do you actively manage the hotels yourself? How many employees do you have? What kinds of tasks do you perform, what are the hours like, and how stressful is it?
Shilpan: Gosh, life of a hotel manager. I have done everything Hunter – from managing the front desk to cleaning toilets. My wife has silently supported my efforts so I’m immensely grateful to her, but we both are thankful to this great nation for the opportunity. We both actively manage our properties. As a hotel manager, we have to schedule employees, take care of daily purchasing, deal with any issues and most importantly, make sure that we keep the property up to or exceed the franchise standards in terms of cleanliness and curb appeal.
Hunter: I guess in a business like that, you have to wear all kinds of hats. Have you ever experienced any major setbacks? Have you ever thought about throwing in the towel, or questioned whether you had chosen the right business?
Shilpan: Fortunately, we have not had major setbacks. It’s been relentless hard work though. As I said, we both have worked tirelessly for the first seven years. Now, we don’t work as hard but we still put in more than 60 hours per week. I’m not a quitter by nature. I’m not the smartest guy out there but I have an iron will. So does my wife. She is very focused and dedicated to our family. I guess you can call me lucky in this regard. Hunter, if you keep working hard, you can get luckier. I’m a staunch believer in doing your best without allowing thoughts of negativity to hijack your dreams.
Hunter: It was Samuel Goldwyn who said “The harder I work, the luckier I get.” But I think you’re a good example of that as well.
How does someone know if they’re cut out for the hotel business? And how can someone learn more about how to get started?
Shilpan: As I said, if I can do it, anyone can succeed. I’m not the one with IQ of 180 but I have succeeded with the relentless work. That’s all it takes to keep digging when there is no hope for the gold by general consensus. Always follow your heart and do what makes you happy. If the hotel business excites you but you don’t want to work beyond your regular 40 hours, it may not be your best suit. I’d suggest managing someone’s business for a year or so to get the feeling. I wasn’t fortunate to do so. I have learned the hard way but in the end what matters is the sheer determination and deep faith in your pursuit. If you don’t believe in yourself, no one else has any interest in doing so either.
Hunter: And finally, where are your hotels located, for the next time we’re in town? Can you offer our readers any special discount, say 10% off and an extra chocolate on their pillow when they subscribe to your blog and subscribe to my blog?
Shilpan: For my blogger friends, I live about 60 miles north of Atlanta. I currently own a Ramada and a Quality Inn and I’m building a brand new Country Inn and Suites with an upscale shopping plaza right off I-85 near Atlanta. I’m very generous as a friend. It may be more than just 10% if you call me and introduce yourself. I will give you a box of chocolates and a hug if you subscribe to my blog. That’s the promise I will make and keep for all of you.
I am a passionate writer and thinker about life, bliss and goodness. I’m not a trained writer but I promise to write from my heart and with utmost honesty. You can see what I’m up to at my blog Success Soul.
Hunter, thank you for this opportunity to share my life story. I’m both humbled and honored to do so. I hope that it will inspire those who still have self-doubt about their ability to make a profound change in their lives.
Hunter: And thank you, Shilpan, for this incredible interview. Even for those of us who already knew you, I think it helps us see you in a different light. I’ll try to refrain from making a Forrest Gump response to your “box of chocolates” comment, but guys – definitely go check out his blog for all kinds of great life advice. You never know what you’re gonna get.









