Hotel Franchise Owners Diversify into Children's Education

After building a career in the ever-fluctuating world of hospitality, hotel owner Kal Patel decided it was time to diversify. As a second-generation hotelier operating nine properties under Imagine Hospitality, Patel knew firsthand how vulnerable the hotel industry can be to economic swings.

“When the economy takes a hit, so do we,” Patel said. “We started looking at other industries to invest in, and we had some friends in early childhood education.”

When one of his friends recommended Children’s Lighthouse, the fast-growing early education franchise, Patel decided he had found the perfect fit to reshape his family business legacy. Now, as he gears up to open his Children’s Lighthouse school in Mt. Juliet, Tennessee, Patel is a prime example of why early education can be a great next chapter for hotel owners and investors.

Diversification benefits

The hotel business has long been a popular investment for entrepreneurs and multi-unit franchisees. But between the rising costs of operations, labor shortages, and market instability, savvy investors like Patel are seeking more stable — and impactful — opportunities. Children’s Lighthouse offers a compelling answer.

“Initially, we thought about opening our own early learning school, but we quickly realized how much is involved,” Patel said. “Children’s Lighthouse already had a proven curriculum and framework in place. We were able to take what they had built and enhance it to fit our vision.”

Patel’s new venture is more than a smart business decision — it’s a way to give back. With a strong demand for high-quality childcare in the Mt. Juliet area, the opportunity was twofold: meet a pressing community need and build a business with long-term stability and purpose.

Similarities to hotel franchising

For hotel franchise owners like Patel, there are many similarities — and advantages — when entering the early education space.

“All of our hotels are franchises, so I’m very familiar with how franchising works. It’s all about having the right tools and support from the brand,” Patel said. That same franchise-savvy mindset made the transition to Children’s Lighthouse smooth and strategic.

With startup costs beginning at $1 million for leased schools and revenues averaging $1.94 million after 18 months*, Children’s Lighthouse provides a lucrative business opportunity — often with less volatility than the hotel industry.

Plus, after the first year of operations, many Children’s Lighthouse franchisees report working 10 hours a week or less, thanks to the director-led model. “Once you get everything running smoothly, you gain the flexibility of being an entrepreneur,” said Patel.

But perhaps one of the most compelling aspects of the brand for Patel was more personal — the educational philosophy. “The curriculum was a big factor,” he said. “My kids have gone through different childcare programs, and we kept moving them because we weren’t happy with the curriculum. But Children’s Lighthouse, which is more family-oriented, really fit the mold for how I would want to raise my kids.”

Patel and his wife, CJ, brought in partners — including one with experience in early learning — to help build their new school. “There is a huge demand in our community for quality childcare and early learning schools,” he said. “My wife also plays a key role, helping make the decision to join the Children’s Lighthouse family and handling all the accounting. It’s really a family effort.”

And while Patel hasn’t left the hotel business behind, he sees early education as a long-term focus. “Our partners and our long-term goal is to keep growing. We’re already looking at additional locations,” he said. “This could be our new main focus.”

Growth and advice

Patel’s message to other hospitality investors? Don’t overlook education**.**

“Franchising gives you the tools to be successful. If you follow the blueprint, you have a strong chance of making it work,” he said. “It’s a lot of hard work at first, but it’s a business where you can scale, create impact, and still take a vacation without answering to anyone.”

With the U.S. childcare market expected to grow to over $88 billion by 2033, the demand is only increasing. Children’s Lighthouse has carved out a niche in the premium early learning space, offering a proprietary STREAM-based curriculum, flexible ownership models, and unmatched franchise support.

Considering a change from hotels? Children's Lighthouse isn't just a different investment; it's a way to build something lasting. It's about focusing on education, family, and a future that's fulfilling and also financially sound.