In a recent episode of the Diamond Podcast, Sam Patel sat down with host Alfredo Diamond to share his remarkable entrepreneurial journey. As the owner of Best Western Hotels in Richmond, Indiana, Sam’s story represents the quintessential American dream—one built on family values, community support, and unwavering determination. The conversation revealed the challenges and triumphs of building a successful hospitality business from the ground up.
The Foundation: Family and Savings
Sam’s entry into the hotel industry wasn’t a solo venture—it was a family affair rooted in marriage and mutual support. After marrying into a family already established in the hotel business, Sam and his wife began their entrepreneurial journey with a simple but crucial principle: saving money.
“Family is always important. They help you to at least start,” Sam explains. This family foundation, combined with disciplined saving while working in Chicago, provided the launching pad for their first hotel acquisition in 2006—a Days Inn (now Travel Lodge) that they operated until selling in 2019, just before the COVID-19 pandemic.
Understanding the Hotel Business Model
For aspiring entrepreneurs, Sam breaks down the financial realities of hotel ownership with refreshing transparency. Hotels operate as real estate businesses where you’re investing in land and buildings that appreciate over time. The valuation formula is straightforward: a hotel generating $500,000 in annual revenue would typically be valued at 3.5 to 4 times that revenue in today’s market.
“You’re selling the business, you’re selling the operations,” Sam notes, emphasizing how business performance directly impacts property value. This appreciation model rewards hands-on operators who can grow revenue through exceptional service and attention to detail.
The Power of Personal Touch
What sets Sam’s approach apart is his commitment to personal, hands-on service. Even in their smaller, economy-segment hotel, the family’s dedication to cleanliness, hospitality, and guest relationships created something remarkable: customers who came not for the brand, but specifically because Sam owned the property.
“It came to the point where guests were not coming in for Days Inn—they were coming in because I own the hotel,” Sam proudly recalls. This personal touch philosophy has remained central to their success, even as they’ve grown to operate a 69-room Best Western.
Navigating Growth and Financing
Sam’s path to expansion involved strategic partnerships with local banks, particularly highlighting the value of community banking relationships. West End Bank and First Bank Richmond played crucial roles in financing their growth, with Sam giving special recognition to Ben Brock for his support.
For first-time hotel buyers, Sam outlines several financing options:
- Traditional commercial loans requiring 20% down
- SBA financing programs offering lower down payments (10-15%)
- The importance of brand affiliation for financing approval
The franchise model, while requiring fees of 9-11% of revenue, provides crucial benefits including brand recognition, loyalty programs, and the credibility that helps secure financing.
The COVID-19 Test
Perhaps the most revealing part of Sam’s story is how he navigated the unprecedented challenges of COVID-19. With the hotel industry among the hardest hit, Sam faced his darkest hour when their entire year’s worth of reservations vanished overnight, reduced to zero.
The stress was so overwhelming that Sam found himself at the local hospital, heart racing with anxiety about losing everything they’d built. But it was in that hospital bed that a crucial realization struck him: “If I survived when I had nothing, I can survive now.”
This moment of clarity transformed his approach to the crisis. Through creative problem-solving, community support, local bank assistance (including a nine-month mortgage deferment), and government relief programs, they not only survived but emerged stronger.
Investing in the Future
Sam’s recent renovation of their Best Western property demonstrates his long-term commitment to Richmond. Rather than expanding elsewhere, he and his wife chose to invest heavily in upgrading their existing hotel, personally designing the furniture and overseeing every detail of the transformation.
The results speak for themselves: guests now ask if they’ve just built a brand new hotel. This investment has also earned them approval for an upgrade to Best Western Plus status, making them the first Best Western Plus in their market—a testament to their commitment to excellence.
Community Impact and Corporate Partnerships
Sam’s success extends beyond profit margins to genuine community impact. The hotel serves various local needs, from hosting IU East golf tournaments to providing accommodations for corporate visitors and families attending local events. His partnership with local educational institutions and businesses creates a positive economic ripple effect throughout Richmond.
Lessons in Balance and Sacrifice
With characteristic honesty, Sam acknowledges the personal costs of entrepreneurship. He openly shares his regret about missing precious time with his oldest son, Kush, during the business’s early years. This reflection led to important changes, including selling their first hotel to focus more attention on their younger son and achieving better work-life balance.
The Recipe for Success
Sam’s journey offers several key lessons for aspiring entrepreneurs:
- Start with savings and family support – Build a financial foundation before taking the leap
- Embrace hands-on operations – Personal attention creates loyal customers
- Build local banking relationships – Community partners become lifelines during tough times
- Invest in your brand and facilities – Continuous improvement maintains competitive advantage
- Prepare for unexpected challenges – Build longer-term reserves beyond typical “rainy day” funds
- Balance business growth with personal life – Success includes family time and community involvement
Looking Forward
Today, Sam and his wife own two hotels outright (Richmond and Greenville, Ohio) while also participating in investment groups for additional properties. Their success story continues to unfold, built on the solid foundation of family values, community engagement, and the kind of personal service that turns first-time guests into loyal, repeat customers.
Sam Patel’s journey from Chicago newcomer to established Richmond business owner exemplifies how the American dream remains achievable through hard work, smart planning, and genuine care for both customers and community. His story serves as inspiration for anyone considering the entrepreneurship path, proving that with the right combination of preparation, persistence, and personal touch, even the most challenging industries can yield remarkable success.
For those interested in learning more about Sam’s Best Western Plus Richmond, the newly renovated property continues to serve travelers and locals alike, embodying the personal service and community commitment that built this remarkable success story.