I'd be curious to know how much Dot Indian ownership is because they're squeezing out everyone else out of the market and how much of it is because everyone else doesn't want to run hotels for whatever reason. With too many entitled Karens running around, hospitality isn't as attractive for many business owners these days.
To tl;dr:
Its a bit of both, but you're forgetting the immigration value add.
You have a combination where family interests back in india will pool money to buy businesses in the states. Once you have a business you will employ the needed number of citizens for the business owner visa (forget the official name; E-5 I think?) which gives the owner greencard-like privileges and more importantly keeps the profit generated away from the corrupt Indian government.
Its hard to find good hotel staff especially in smaller markets. And so what will happen is family members and distant cousins will be schemed to be brought over and used as heavily exploited labor. There are a million ways they do this - student visas where they illegally work, spouse and fiancee visas, H1-B fraud where they will offer impossibly low wages for "Computer experts" but the real job is frontdesk bitch.
I want to say "slave" labor, but they will be put up in the hotel (or usually a hotel owned by the people running the empire, one of the cheap shitty ones) and the wage they make being paid well under minimum wage will be significantly higher than what they could earn in India. So like imagine slave labor but they eventually get sent back to Africa after 5 years with a sack of money, but for those 5 years they were forced to work. Its not even indentured servitude because they aren't learning a craft or paying for passage or w/e, they are just having money remitted back to family, usually their parents, back in India. Usually this is done under the table, sometimes you are Bramin Slave because of family debt.
Basically the staff are underpaid and poorly supervised and have zero stake in the running of the hotel. This is why Designated Google Reviews are about the only way to get traction, as the owners usually farm out any sort of inspection or monitoring to the reviews on google.
that 1-star review is certain to trigger a strugge session from the owner, which is why the threat is the only thing that motivates them to pretend to give a shit. that's why bedbugs and pissstains are rampant in placed owned by Jeets.
Anyway, this is why Jeets are always in a rush to hire more Jeets because they know they can abuse the fuck out of them.