UGA SBDC helps hotel entrepreneur build his dream in rural Georgia

When Nilesh “Neil” Patel decided to strike out on his own in the hospitality industry, he knew the road ahead would be challenging. Patel had spent nearly a decade managing his father’s hotel in Chattanooga, Tennessee, learning the ins and outs of the business. When his father sold the property, Patel and his wife began searching for an opportunity to build something of their own. They found that opportunity in Sandersville, Georgia.

Sandersville’s local hotels were in need of renovation and, as a result, many visitors opted to stay in nearby Milledgeville. Patel saw potential where others saw decline.

“At that point, I knew I wanted to run my own hotel,” he said. “I didn’t have a particular market in mind. I was looking for anything that could start me out.”

In 2016, Patel had identified the hotel in Sandersville he wanted to purchase, but local banks were unwilling to finance the deal. He connected with Eric Frickey, a business consultant at the UGA SBDC in Augusta, for assistance securing the necessary funding.

Frickey referred Patel to an Atlanta-based commercial bank specializing in hotel acquisitions and SBA 7(a) lending.  

“When I was trying to buy my first hotel, I went to maybe nine or 10 separate banks on my own,” Patel said. “Then I met Eric, and he helped put together a financial plan and projections that made sense to the bank.”

The UGA SBDC also obtained a lodging study from the Washington County Chamber of Commerce, which confirmed what Patel and Frickey expected: Sandersville was losing overnight guests to Milledgeville. The report, combined with economic development data showing upcoming DOT projects and infrastructure growth, helped justify Patel’s investment.

“With data from the Chamber of Commerce, we were able to help Nilesh purchase his first hotel, reflag it as a Quality Inn, clean it up, and put some money into it,” said Frickey. “When you buy a business, you’ve got to get a little bit of extra capital to make it work.”

The guidance from the UGA SBDC didn’t just obtain financing, it also gave Patel a clear vision for growth. That foundation would prove critical as he expanded his business.

“The first hotel had potential, but it wasn’t being rented properly,” said Patel. “It was run down. I thought if I renovate the property and improve service and marketing, it will do better. We are talking about going from $300,000 to $1.5 or $1.6 million last year.”

Patel and his wife poured themselves into the project.

“We put in a lot of our personal time, not caring how much,” he said. “We are talking about 70, 80 hours a week, while living on site.”

In 2021, Patel purchased a second property — a Roadway Inn — again with Frickey’s guidance on financials and business planning. Today, Patel owns two hotels under Arya Mitali, Inc., employing 16 full-time and eight part-time staff. Combined revenue for both properties has grown from $509,000 to $2.2 million in 2023. Patel has received a total of $2.67 million in financing for his acquisitions and is now working with the UGA SBDC to purchase a third hotel in Griffin, Georgia. In addition, occupancy rates increased from 20% to 60%.

For Patel, the relationship with the UGA SBDC has been transformative.

“Eric is like family,” said Patel. “If I have any questions — or even if I don’t — I just reach out to him once in a while just to pick his brain. The main reason I respect him so much is that he helped me start my first business when I thought it wasn’t possible.”

Patel encourages other entrepreneurs to take the leap, drawing from his own experience of overcoming doubt and an uncertain future.

“Most of my family told me, ‘Don’t do it. Just get a job. This is risky.’ But you only have one life to live,” he said. “If you have a dream of doing something more than just the eight-hour job, just do what you want to do.”