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
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]
Residence: Irving, Texas
Chan Patel is Chairman, Chief Executive Officer and President of State Bank of Texas. Chan also is an owner and/or partner in several hotel operations in Texas. Born in India in 1945, he became a US citizen in 1965 and has been an active owner and operator of hotels since 1976. He holds a Bachelor of Science Degree in Engineering from Bombay University, a Masters of Science Degree in Industrial Engineering from Stanford University and a Masters of Science Degree in Management Science from John Hopkins University. He is founding Chairman of the Indo-American Chamber of Commerce and is an active member of many religious and community associations and organizations.
- Sushil Patel [Director, Executive Vice President, Chief Lending Officer]
Residence: Irving, Texas
Sushil Patel is Executive Vice President and Chief Lending Officer at State Bank of Texas. He joined the bank in 2004 and has served on the Board of Directors since 2000. Prior to joining State Bank of Texas, Sushil worked as Senior Analyst at Bank of America Securities in the Global Corporate & Investment Bank. At BAS, he helped raise capital for Media and Telecom companies in the equity, high yield and high-grade debt markets. He holds a B.B.A. in Finance from the University of Texas at Austin and an M.B.A. from the University of Chicago Graduate School of Business. In addition to his work in banking, Sushil, through various family interests, operates and develops hotels in Manhattan, other boroughs of New York City and throughout the Dallas/Ft. Worth Metroplex.
Sushil serves as the Secretary of the Planning and Zoning Commission for the City of Irving and has been on the Planning and Zoning Commission since 2010. Sushil serves as a member of the Board of Management for the Irving Family YMCA.
Sushil is married to Sima Patel and they have one son, Aaron.
- P.N. (Pete) Patel [Director]
Residence: Brunswick, Georgia
P.N. Patel was born in India in 1938. He holds a Bachelor of Science Degree in Mechanical Engineering form Ghandi Engineering College in Surat, India. He worked as a Mechanical Engineer for twelve years in India, of which ten of those years were with Baroda Tayon Corp. of India. P.N. Patel immigrated in 1971 where he worked as an employee of Dallas Fort Worth International Airport. Soon after that, he began buying, selling, and operating hotels in Texas and Georgia. His current activities are now centered in hotel development and management across the United States. In addition to his hotel investments, P.N. Patel was involved in capital raising for a local Brunswick bank called Atlantic National Bank in which he helped gather 50 investors. He and his wife, Shanta, have two daughters, Amita and Manisha and one son, Tarun.
- J.D. Patel [Director]
Residence: Irving, Texas
J.D. Patel has been in the hotel industry since 1976. He attended South Gujarat University in India and holds a Bachelor of Science Degree in Chemistry from Northern Illinois University. J.D. twice participated in Gujarat State Olympics and twice was chosen to represent Gujarat University in Kabbadi. He is a member of the Gujarati Cultural Society. J.D. and his wife, Manjula, have four children and two grandchildren.
- Bipin B. Patel [Director]
Residence: Irving, Texas
Bipin Patel is President and CEO of Irving Hospitality Services, LLC which presently owns and operates ten hotels. His business experience is in construction and finance. Bipin holds a Bachelor of Science Degree in Math and Computer Science from the University of Texas at Dallas. He is a member of the Asian American Hotel Owners Association (AAHOA). He and his wife, Sandhya, have two sons and two daughters.
- Surekha Patel [Director]
Residence: Irving, Texas
Surekha Patel holds a Bachelor of Science Degree in Chemistry from Gujarat University in India. Surekha worked as a Chemist for Zocon for several years and at American Airlines in the Marketing Department for 10 years. Additionally, she has hotelier experience and works in the family's hotel business . Surekha enjoys her management responsibilities in development of new hotel properties, such as the Holiday Inn Express in Las Colinas in Irving, Texas. Surekha has four children and six grandchildren, and is wife of Chan Patel, chairman of State Bank of Texas. For the past five years, Surekha has served as Director at Large for the Asian American Hotels Owners Association (AAHOA). In this role, she has served as Chairperson for several Women's Conferences . Surekha is also a volunteer social worker with Hindu Temple Society and the Gujarati Cultural Society.
- Hira Patel [Advisory Director]
Residence: San Jose, California
Hira Patel retired from IBM after 28 years where he had published ten Invention Disclosures in IBM's Technology Disclosure Bulletin and was published in AIAR Journal. Hira is presently involved in real estate development in the hospitality industry. He is Director and Secretary of the Alameda Business Association, Trustee of Devotional Sitaram and member of India Cultural Association of Bay Area. Hira holds a Bachelor of Science Degree in Physics & Mathematics from the University of Bombay, India. He also has a Bachelor of Science Degree in Mathematical Engineering from the University of Louisville, Kentucky and a Master of Science Degree in Engineering from State University New York in Buffalo, New York.
- Jay R. Patel [Director]
Residence: Roanoke, Virginia
J.R. Patel is Founder and President of RELAX, Inc., a Roanoke, Virginia Hotelier, which was incorporated in 1980. RELAX, Inc. presently owns and operates ten hotels. J.R. lived in England for twelve years and Canada for seven years before immigrating to the US in 1978. He is an active member of Asian American Hotel Owners Association (AAHOA) and Roanoke Valley Chamber of Commerce. He and his wife, Kantaben, have two sons.
- D.N. Patel [Director]
Residence: Irving, Texas
Dan Patel relocated to the U.S. in 1968 from Gujarat, India and holds a Masters of Science Degree in mechanical Engineering from Southern Methodist University (SMU) in Dallas. After an eight-year career in engineering, Dan changed industries and became a hotel owner and operator. His expertise and knowledge in the hospitality industry dates back to 1977.
After spending numerous years owning several hotels throughout the U.S., Dan started a management company, Patriot Hospitality. Under the leadership of Dan, Patriot Hospitality and its related entities own, manage and develop properties under the Hilton, IHG, Carlson, Wyndham and Best Western brands across Florida, Iowa, Louisiana, Maryland, Oklahoma and Texas.
Dan's past civic involvement includes a ten-year active membership as a Rotarian in Savannah, Ga. He has also severed as Governor in his region for Best Western International, and has held leadership positions for the Gujrati Cultural Society in Dallas as Secretary and President of the senior citizens group. Dan was also a member of the Asian American Hotel Owners Association (AAHOA).
Dan is one of the founding members of the State Bank of Texas and has been an active director from the start.
- Kishor Bhikha [Director]
Residence: Alpharetta, Georgia
Kishor Bhikha was raised in Panama and immigrated to the US in 1977. He holds a Bachelor of Science Degree in Finance from the University of Cal-Tech, Pomona California. Kishor began his hotelier ventures in 1979 and currently is an owner of various partnership hotels. He is a member of Asian American Hotel Owners Association (AAHOA). He and his wife, Nayana, have two children.
- Yasmin Gupta [Director]
Residence: Dallas, Texas
Yasmin Gupta is Director and Executive Vice-President of SB International, Inc., a privately-held steel distribution company headquartered in Dallas, Texas since 1981. The company is primarily focused on the energy sector and is a leading supplier of high-quality Oil Country Tubular Goods and Line Pipe to the oil and gas industry in both the United States and Canada, as well as an importer and exporter of specialized steel products. She is also involved with various commercial real estate investments in the United States. Yasmin holds a Bachelor's degree in Public Relations from Stella Maris College and an MBA in international Trade and Management from the University of Dallas in Irving, Texas. She was awarded the privilege of being among the first honorees inducted in 2013 into the Beta Gamma Sigma (BGS) International Honor Society at the University of Dallas, College of Business Chapter. She is involved with several community organizations including the Girl Scouts, United Way, the Chinmaya Mission, the DFW Indian Cultural Society and Primary Care Clinic of North Texas, a system of three non-profit healthcare facilities providing medical care to uninsured adults in the Dallas/Fort Worth metroplex since 2003.
- Ketan Masters [Director]
Residence: Ft. Worth, Texas
Ketan Masters has been an hotelier entrepreneur since 1979. He holds a Bachelor of Science Degree in Management Science at University of Texas at Dallas. He has served on the Board of Directors of Asian American Hotel Owners Association (AAHOA) consecutively form 1994 to 2004. Further, he serves as a Director of the Texas Hotel & Motel Association. He also has held the offices of Secretary and President for Gujarati Cultural Society. Raised in Zambia, Africa, he has been in the Dallas, Texas metroplex area since 1975.
- Rajan Patel [Director, Vice President]
Residence: Irving, Texas
Rajan Patel has been Vice President of Lending at State Bank of Texas since 2007 and has served on the Board of Directors since 2011. Prior to joining State Bank of Texas in 2005, Rajan attended Texas A&M University and studied Finance at the Mays School of Business. He also serves as a consultant for many family-owned hotels around the nation. Rajan attended the Southwestern Graduate School of Banking program through Southern Methodist University (SMU) and graduated in 2009. He is an active member of Asian American Hotel Owners Association (AAHOA). In 2010, Rajan married his wife Reena, who is GM at the La Quinta Inn & Suites in Irving, TX and also serves as a Regional Ambassador for AAHOA.
- Toral Balakrishnan [Advisory Director]
Residence: Austin, Texas
Toral Balakrishnan is a Physician Assistant specializing in Plastic & Reconstructive Surgery in 1999. Toral holds a Bachelor of Science in Physician Assistant Studies. She has also enjoyed writing, publishing four internationally recognized articles as well as a chapter within a Medical Book for Laser Training used in the US. After close to 14 years in the Plastic Surgery field, she has now focused on her career in the hotel hospitality industry, owning and operating hotels primarily within Texas.
Toral is married to Dr. Rajesh Balakrishnan, a practicing dentist, in Austin, Texas.
- Shetal Patel [Advisory Director]
Residence: Irvine, California
Shetal Patel has been a hotel entrepreneur since 2004 . Currently she owns and operates two Intercontinental Hotel Group properties in Southern California. Prior to this, she practiced as a Physician Assistant in Plastic Surgery and Cosmetic Dermatology. She also has owned and personally managed her own medical practice specializing in Cosmetic Dermatology. She holds a Bachelor of Science degree in Biology from the University of Texas at Arlington and a Bachelor of Science in Physician Assistant Studies from University of Texas Southwestern Medical School in Dallas, TX. She also holds an MBA from University of California at Irvine. She is married to Narendra Patel, an attorney by profession and also a hotel entrepreneur. She has three children.
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.
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
- 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
The early 2000's recession results in Indians building more sophisticated hotel management and development
structures and results in multi-property ownership and development.
Chan Patel charters State Bank of Texas with $2.0 million in
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.
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.
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
Goldfield Motel purchased by Kanjibhai Desai in downtown San Francisco
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.
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.
Chan Patel purchases the Travel Lodge Inn (now Hotel Belmont) on Fort Worth Avenue.
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
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.
- FDIC: Failed Bank Information - Bank Closing Information for Millennium State Bank of Texas, Dallas, TX
- Former motel owner cashes out with State Bank of Texas | Articles | Archive | IndUS Business Journal
- The hot money problem - Dallas Business Journal
- TX dodges bank failures - Dallas Business Journal
- Local banks rank as most efficient at making money - Dallas Business Journal
- Texas Patels take Dallas Bank | Dissident Voice
- Feature :: Worth billions of dollars, these banks help Indian immigrants weave dreams
- Feds Take Over, Sell Dallas Bank | NBC 5 Dallas-Fort Worth
- Immigrant America and Patel tales: US has more than 1,45,000 Patels and 72,642 Singhs - Times Of India
- US Indians turn to ethnic banks for loans - Hindustan Times
- FDIC: Electronic Deposit Insurance Estimator (EDIE) – Online Version