About SBT

 

Founder - Chan Patel

Founder - Chan Patel

Born in Bombay India in 1945, Chan Patel is an example of the American Dream personified. He grew up in a 5 x 8 room in the Dadar area of Mumbai, India with 4 siblings and his parents, and through hard work and dedication, he earned his Bachelor’s degree with top honors. As a result of his dedication, he was accepted to some of the finest graduate institutions in America, including M.I.T, Columbia, and Stanford. In 1965 with $600 (his father’s whole life savings) he came to America to attend Stanford University. This was the beginning of Chan’s journey to the American dream, a journey that would help transform the face of the hospitality industry.

After earning Masters degrees from both Stanford and John’s Hopkins University, Chan took a job as a programmer with Braniff Airlines; a job that brought him to Dallas, Texas where he would spend the rest of his life making his mark. In 1976 Chan bought his first hotel. In his first year as a hotel owner he worked 3 jobs to support his investment and his new family. However, because of his dedication his hotel quickly began to make money and he was able to stop working with Braniff and devote himself to becoming a hotelier. It took him no time at all to become a giant in the hotel industry, and he quickly expanded his empire to include a total of 17 hotels. However, Chan Patel has never been a man to rest on his laurels. In his journey to become a hotel owner, he learned that many of his fellow immigrants found it difficult to get a loan due to cultural differences. From this observation, a dream was born.

The Beginning of State Bank of Texas

The Beginning of State Bank of Texas

Chan Patel knew that his fellow immigrants were smart, hard-working, and able entrepreneurs but the lack of lending solutions for them made it difficult for them to purchase cars let alone start businesses and begin to build their own American Dream. So, he decided the best way to help would be to create a bank designed to meet the lending needs of the immigrant community, especially those who were in the hospitality industry. His journey to begin the State Bank of Texas was not an easy one. In the 80’s much like today the economy was struggling and capital was extremely limited. But obstacles have never been a problem for Chan Patel.

In order to start a bank at that time, it required $2 million of capital. With Chan willing to invest $1 million himself, he approached other local Indian businessmen and professionals to purchase shares at the $10 per share. With banking being such a new venture, he was unable to raise the capital. He then approached several family members and friends to invest $100,000 each. In exchange, he promised that each of them would become a professional banker and be Director of the bank throughout his lifetime. With this novel approach, he was able to raise the remaining $1 million within two weeks. Soon October 19, 1987, Black Monday (the day the stock market crashed), Chan Patel began the State Bank of Texas with a single paid employee. With all eyes watching these “Motel Patels” opening a bank, Chan wanted to ensure the success of the bank. To this end he, his investors and their spouses took the necessary bank training courses and ran the bank with only one paid employee. With perseverance they made it through the worst of the recession and later hired trained bankers to serve their growing customer base. From the second quarter of the opening to this day, State Bank of Texas has not reported any operating losses in any quarter since its existence.

Today nearly 30 years later, the State Bank of Texas is still a family owned and operated bank, specializing in providing lending solutions for the hospitality industry. Under the leadership of Chan Patel, along with the execution and drive from his two sons, Sushil Patel and Rajan Patel, State Bank of Texas continues to shape the banking and hospitality industry. Since its inception, it has distributed more than $70 million in profits and maintains a book equity value of $80 million – all without ever raising another penny in capital. Despite their success, they maintain the values that made them successful. They develop one to one relationships with those they lend to as well as their account holders, and work tirelessly to provide a maximum return on investment to their shareholders. In the last five years their growth has reached new levels despite the economic woes that have plagued other financial institutions. In fact, their business remained strong enough to allow them to acquire Millennium Bank, expanding their lending capability and capital base. Regardless of their growth, they continue to focus on personalized customer service and speedy loan approvals that help entrepreneurs stay ahead of the curve.

The State Bank of Texas was founded by a man who worked hard all of his life and built his fortune from virtually nothing. His success was founded on hard work, integrity, and a desire to foster community growth. It is those principles he founded his bank on and those principles that the State Bank of Texas continue to operate on a daily basis. At the State Bank of Texas, our commitment is to provide our customers with service that is:

  • Personal: Banking is built on a partnership between bank and customer. Whether the customer is a recipient of a loan or an account holder, a relationship with your banker helps builds trust. State Bank of Texas works individually with its clients to ensure that they have the solutions that best meet their needs.
  • Convenient: By combining a commitment to developing relationships to clients with some of the best technological tools for banking State Bank of Texas creates an approach to managing accounts that is suited to all clients whether they prefer online tools or that personal touch.
  • Timely: The ability to get a loan in a timely manner can make or break a business deal. At State Bank of Texas, they understand the time sensitive nature of the business world, because the bank was founded by a successful entrepreneur. Therefore, they maintain a commitment to returning loan decisions in a matter of days not weeks or months.
  • Chan Patel [Founder, Chairman, President and CEO]
  • Sushil Patel [Director, Executive Vice President, Chief Lending Officer]
  • P.N. (Pete) Patel [Director]
  • J.D. Patel [Director]
  • Bipin B. Patel [Director]
  • Surekha Patel [Director]
  • Hira Patel [Advisory Director]
  • Jay R. Patel [Director]
  • D.N. Patel [Director]
  • Kishor Bhikha [Director]
  • Yasmin Gupta [Director]
  • Ketan Masters [Director]
  • Rajan Patel [Director, Vice President]
  • Toral Balakrishnan [Advisory Director]
  • Shetal Patel [Advisory Director]

Director Hotel Experience

Combined, the Board of Directors own and control 111 properties as of March 31, 2011. The hotels are spread out geographically and across brand affiliation and type.

Director Hotel Experience

Historians refer to this as a non-linear ethnic niche: a certain ethnic group becomes entrenched in a clearly identifiable economic sector, working at jobs for which it has no evident cultural, geographical or even racial affinity. Indians constitute less than 1% of this country's population. Today, Indians own over 40% of all hotels and motels in the United States. Of the Indian hotel owners, 70% have the surname of "Patel". This economic ethnic niche is extraordinary.

Reasons for Phenomenon

  • Cash flow business did not require skill sets from a marketing and communications perspective
  • Could sponsor relatives and employ them
  • Restaurants required handling of meat, an uncomfortable activity
  • Provided a home and ability to manage property 24 hours without hired help
  • Down payment funds would come from network of friends and relatives within the community
  • Investment would allow for permanent residency and later citizenship

Statistics

  • The Asian American Hotel Owners Association (AAHOA) has over 10,000 members of which 70% are "Patel"
  • Own 20,156 hotels (over 40% of all in United States)
  • Own over $128.7 billion in property value
  • Spend over $2.0 billion in property taxes
  • Spend over $9.4 billion in payroll
  • Employ over 600,000 employees
 

The background of SBT is tied together with the history of how the Patel Community evolved to dominate the hotel industry. Chan Patel, founder and President and CEO, and eleven of the twelve founding directors were hoteliers before starting SBT - and all still are in the hotel business.

Indians Purchase Distressed Motels

 
 

2000s

The early 2000's recession results in Indians building more sophisticated hotel management and development
structures and results in multi-property ownership and development.

 
 

1987

Chan Patel charters State Bank of Texas with $2.0 million in
equity

 
 

1984

Chan Patel has expanded his holdings to over 15 motels in the D/FW Metroplex; Named to Advisory Board of Guaranty Federal Bank Branch in Oak Cliff.

 
 

1976

Chan Patel becomes one of the first Indians to purchase a motel in the D/FW Metroplex when he purchases the Alamo Plaza motel in Oak Cliff and moves family into its living quarters; other Indians follow suit and purchase motels on the same stretch of Ft. Worth Avenue.

 
 

1960s

Restrictions on immigration limited Indians coming from abroad, but of those that did, the Patel’s followed to California and ended up owning close to 60 to 70 motels

 
 

1940s

Goldfield Motel purchased by Kanjibhai Desai in downtown San Francisco

 
 

1990s

Indian motel owners have trouble getting insurance coverage and loans; Asian American Hotel Owners Association (AAHOA) started with 160 members; The early 1990’s recession results in Indians purchasing larger, franchised hotels.

 
 

1985

Chan Patel is the largest depositor at Trinity National Bank in Oak Cliff and is approached repeatedly by its President to co-sign several auto loans for other "Patel Motel Owners" on Ft. Worth Avenue.

 
 

1977

Chan Patel purchases the Travel Lodge Inn (now Hotel Belmont) on Fort Worth Avenue.

 
 

1970s

Arab Oil Embargo causes travel to come to a halt; motel business suffers and lenders repossess motels from American owners; new immigration laws result in wave of non- professional Indian immigrants –if willing to invest $40,000 in a business, then can gain permanent residence; Idi Amin also expels 70,000 Indians from Uganda

 
 

1950s

Due to the end of World War II and the completion of the interstate highway system, American real estate developers build motels throughout the country.