How Gujarati Immigrants Built a Hotel Legacy From Handshake Loans

Kanji Desai, an early Gujarati immigrant who crossed borders secretly, leased the first Indian-operated hotel in Sacramento during World War II while Japanese Americans were interned. That single lease became the foundation of a community-wide practice: established owners would lend money to newcomers on a handshake, no paperwork required.

Those informal loans allowed fresh arrivals to lease their own properties and bring their families to the United States. Over decades, the system created a proven path to hotel ownership that spread from California across the country.

The handshake-loan model relied on trust within the tight-knit Gujarati community. Lenders typically charged no interest and expected repayment only after the borrower's hotel began turning a profit.

By the 1970s and 1980s, Gujarati immigrants owned a significant share of budget motels in the U.S., particularly along interstate highways. The practice continues today, though some transactions now include written agreements.