Hotel manager salary: where it sits on the Australian salary index

Understanding the hotel manager salary landscape

Hotel manager salary is not a single figure. It depends on the size and type of hotel, location, the manager’s duties, and whether they are covered by an award. The most relevant award is the Hospitality Industry (General) Award 2020, which includes a classification for 'Managerial staff (Hotels)'. According to, the minimum annual salary for this classification is $63,617 as at 1 July 2026. That works out to an index of 58.7 on the Salary Index, well below the national line of 100 ($108,352).

However, many hotel managers are not covered by the award. The Fair Work Ombudsman explains that managers performing senior management duties or responsible for a significant portion of a hotel are excluded from award coverage. These managers are entitled only to the national minimum wage ($26.44 per hour from 1 July 2026) and the National Employment Standards. In practice, such managers often negotiate higher salaries.

Where hotel manager pay sits on the salary index

The salary index compares yearly gross ordinary-time earnings to the national full-time adult average ($108,352). For hotel managers, we lack a reliable median figure. The Australian Bureau of Statistics and Jobs and Skills Australia report that median earnings for Hotel and Motel Managers are not available due to high standard error. What we do know is that the accommodation and food services industry has an index of 72.5, implying an annualised ordinary-time benchmark of about $78,555. That is a useful reference point, though hotel managers likely earn more than the industry average because they are managers.

Let’s look at some examples using the index:

• A hotel manager earning $80,000 per year has an index of 73.8 – close to the industry average.
• At $90,000, the index rises to 83.1.
• At $100,000, the index is 92.3 – still below the national line but above the industry average.
• A manager earning $120,000 would have an index of 110.8, above the national line.

These are illustrative only. Actual salaries vary by state – for instance, Western Australia has a state index of 106.9, while Tasmania is 88.6. A hotel manager in Perth may earn more than one in Hobart, reflecting local labour markets.

Factors that influence hotel manager earnings

Several factors push hotel manager salaries up or down:

• Size and type of establishment: A manager of a large city hotel with hundreds of rooms and multiple departments will earn more than the manager of a small motel.
• Chain vs independent: International hotel chains often have structured salary bands, while independent hotels may offer lower base pay but other perks.
• Location: As noted, state indices vary. The industries page shows accommodation and food services at 72.5 nationally, but within that, capital city hotels pay more than regional ones.
• Duties and award coverage: Managers covered by the award and paid at least 125% of the minimum ($79,521) can have penalty rates and overtime absorbed into their salary. This is common for managers working long hours – the average full-time hours for hotel managers is 50 per week, according to Jobs and Skills Australia.

Award coverage and salary absorption

If a hotel manager is covered by the Hospitality Award, clause 25 allows for salary absorption. The employer can pay a salary that is at least 125% of the minimum annual salary ($79,521 from 1 July 2026). In return, the manager loses entitlements to allowances, penalty rates, overtime, and certain breaks. This simplifies payroll but means the manager’s total remuneration may not reflect actual hours worked.

Managers excluded from the award (e.g., general managers, regional managers) are not subject to these rules. They must be paid at least the national minimum wage, but their salary is a matter of negotiation.

Tax and superannuation considerations

From 1 July 2026, the superannuation guarantee is 12% on earnings up to the maximum contribution base of $270,830. For a hotel manager earning $90,000, the employer must contribute $10,800 to super. That is on top of the salary.

For income tax in 2026–27 (resident, with tax-free threshold, excluding Medicare levy), a $90,000 salary would fall into the 30% bracket (income between $45,001 and $135,000). After the 2% Medicare levy, the take-home pay would be roughly $69,000 per year, or about $1,327 per week. That is an estimate – it ignores HELP repayments, salary sacrifice, and other adjustments.

Summary

Hotel manager salary is a moving target. The award floor is $63,617 (index 58.7), but most managers earn more. The accommodation industry benchmark of $78,555 (index 72.5) is a better guide, though many experienced managers in major hotels will exceed $100,000. Without published median data, the best approach is to compare your offer or current pay to the national line using the Salary Index. For more on how different industries stack up, see the industries page. If you are negotiating a salary, remember that super is additional and that tax will reduce take-home pay.