For those pursuing a lucrative career in hospitality management, a key question is: which hotels pay managers the most? The hotel segment, size, location, and prestige all impact earning potential.
If you’re short on time, here’s a quick answer: Luxury hotels and high-end resorts generally pay managers the highest salaries, which can exceed $150,000 per year.
In this comprehensive guide, we will compare the salary potential of hotel managers across different hotel segments, including luxury, full-service, focused-service, and limited-service hotels. We’ll discuss how factors like hotel class, average daily rate (ADR), location, and international branding impact pay.
We’ll also provide insider tips on how to progress your career to land a top paying hotel management role.
Hotel Segments and Typical Manager Salaries
When it comes to hotel management positions, salaries can vary significantly depending on the segment of the hotel industry. Let’s take a closer look at the typical salaries for managers in different hotel segments.
Luxury Hotels and Resorts
In the world of luxury hotels and resorts, it should come as no surprise that managers earn some of the highest salaries in the industry. These establishments are known for their opulence and exceptional service, and they are willing to compensate their managers accordingly.
On average, managers in luxury hotels and resorts can expect to earn salaries upwards of $100,000 per year. This figure can vary depending on the location of the hotel and the specific role of the manager.
Full-Service Hotels
Full-service hotels typically offer a wide range of amenities and services, including restaurants, bars, and conference facilities. Managers in full-service hotels are responsible for overseeing all aspects of the hotel’s operations.
While their salaries may not be as high as those in luxury hotels, they still enjoy competitive compensation packages. On average, managers in full-service hotels can earn salaries ranging from $60,000 to $80,000 per year.
Focused-Service Hotels
Focused-service hotels are known for offering limited amenities compared to full-service hotels. These establishments generally focus on providing comfortable accommodations and essential services to their guests.
As a result, manager salaries in focused-service hotels tend to be lower compared to their counterparts in luxury or full-service hotels. On average, managers in focused-service hotels can expect to earn salaries ranging from $40,000 to $60,000 per year.
Limited-Service Hotels
Finally, we have limited-service hotels, which are often budget-friendly options that cater to travelers seeking basic accommodations and minimal amenities. Managers in limited-service hotels oversee day-to-day operations, but their salaries tend to be on the lower end of the spectrum.
On average, managers in limited-service hotels can earn salaries ranging from $30,000 to $40,000 per year.
It’s important to note that these salary figures are averages and can vary depending on factors such as the location, size, and reputation of the hotel. Additionally, individual negotiation skills and experience can also play a significant role in determining a manager’s salary.
For more information and specific data on hotel manager salaries, you can refer to websites such as PayScale or Glassdoor. These platforms provide valuable insights into industry trends and can help both aspiring and current hotel managers make informed decisions about their career paths.
Factors That Influence Salary
When it comes to hotel management salaries, there are several factors that can greatly influence how much a manager earns. These factors include hotel class and average daily rate (ADR), location, international branding, and management experience.
Hotel Class and ADR
The class of a hotel and its average daily rate (ADR) play a significant role in determining manager salaries. Luxury hotels, such as five-star resorts and upscale boutique hotels, often pay their managers higher salaries compared to budget or economy hotels.
This is because luxury hotels typically generate higher revenues and have higher guest expectations, requiring managers with extensive experience and skills to meet those demands.
According to a study conducted by Hospitality Net, managers in luxury hotels earn an average salary of $100,000 per year, while managers in budget hotels earn an average salary of $50,000 per year.
Location
The location of a hotel also plays a significant role in determining manager salaries. Hotels in major cities or popular tourist destinations often pay their managers higher salaries compared to hotels in smaller towns or less popular areas.
This is because hotels in high-demand locations have higher revenues and greater competition, requiring managers to possess strong leadership and business skills to succeed.
For example, a general manager in a luxury hotel in New York City may earn a salary of $150,000 per year, while a general manager in a similar hotel in a smaller city may earn a salary of $80,000 per year.
International Branding
Hotels that are part of international hotel chains or well-known brands tend to offer higher salaries to their managers. This is because these hotels benefit from the reputation and resources of the brand, attracting a larger customer base and generating higher revenues.
As a result, managers in branded hotels are often rewarded with higher salaries to reflect the added responsibilities and expectations.
According to a report by Hotel Management, managers in internationally branded hotels earn an average salary of $110,000 per year, compared to managers in independent hotels who earn an average salary of $70,000 per year.
Management Experience
One of the most influential factors in determining hotel manager salaries is the level of management experience. Managers with a proven track record of success and extensive experience in the industry are often rewarded with higher salaries.
This is because experienced managers bring valuable skills, knowledge, and insights to the role, which can contribute to the overall success and profitability of the hotel.
According to a survey conducted by Hcareers, hotel managers with less than five years of experience earn an average salary of $60,000 per year, while managers with over 10 years of experience earn an average salary of $100,000 per year.
Highest Paying Hotel Management Jobs
When it comes to hotel management, some positions are more lucrative than others. Here are three of the highest paying hotel management jobs in the industry:
General Manager at Luxury Property
Being a general manager at a luxury hotel can be a highly rewarding career. These individuals are responsible for overseeing all operations and ensuring that the property runs smoothly. Not only do they have to manage a large staff, but they also need to ensure that guests have an exceptional experience during their stay.
According to the Bureau of Labor Statistics, the median annual wage for lodging managers, which includes general managers, was $54,430 in May 2020. However, salaries can vary significantly depending on factors such as the size and prestige of the hotel.
Top-tier luxury hotels often offer generous compensation packages to attract the best talent in the industry.
Regional Vice President
As a regional vice president in the hotel industry, you would be responsible for overseeing the operations of multiple hotels within a specific geographic region. This role requires strong leadership skills and a deep understanding of hotel management principles.
According to a survey conducted by Skift, regional vice presidents in the hotel industry can earn an average annual salary of $165,000. However, it’s important to note that this figure can vary depending on factors such as the size of the hotel chain and the region in which you work.
Corporate Management
Working in corporate management for a hotel chain can also be highly lucrative. In this role, you would be responsible for overseeing the strategic direction and overall performance of the company. This may involve developing marketing strategies, analyzing financial data, and making key business decisions.
According to a report by HospitalityNet, the salaries for corporate managers in the hotel industry can range from $100,000 to $300,000 or more, depending on the size and success of the company.
It’s important to note that salaries in the hotel industry can vary significantly depending on factors such as location, experience, and the specific hotel or company. Additionally, these figures are subject to change over time as the industry evolves and market conditions shift.
Tips for Advancing Your Hotel Management Career
If you are looking to climb the corporate ladder in the hospitality industry, it’s important to have a clear strategy in place. Here are some tips to help you advance your hotel management career and increase your earning potential.
Earn a Hospitality Degree
One of the first steps to a successful career in hotel management is to earn a degree in hospitality or a related field. A degree provides you with a solid foundation of knowledge and skills that are essential for managing a hotel.
Additionally, many higher-level management positions require a bachelor’s degree or higher.
When considering a hospitality degree program, look for reputable institutions that offer courses in hotel management, operations, finance, and marketing. These courses will give you a well-rounded education and prepare you for the challenges of the industry.
Gain Experience at High-End Hotels
Working at high-end hotels can greatly enhance your resume and increase your chances of being considered for top management positions. These establishments often have higher standards and can provide valuable experience in delivering exceptional customer service, managing upscale amenities, and overseeing luxury accommodations.
Consider starting your career at a well-known luxury hotel chain or boutique hotel that is known for its exemplary service. This experience will not only give you an edge in the job market but also expose you to best practices in the industry.
Obtain Advanced Certifications
In addition to a degree and experience, obtaining advanced certifications in hotel management can help you stand out from the competition. Certifications demonstrate your commitment to ongoing professional development and showcase your expertise in specific areas of hotel management.
Some widely recognized certifications in the hospitality industry include the Certified Hotel Administrator (CHA) designation, which is offered by the American Hotel and Lodging Association, and the Certified Hospitality Supervisor (CHS) certification, which focuses on supervisory skills.
By investing in your education and gaining valuable experience, you can position yourself for success in the competitive world of hotel management. With the right qualifications and a proven track record, you will be well on your way to landing a management position at a hotel that offers competitive pay and benefits.
Conclusion
In summary, luxury hotels and resorts offer the highest salaries for hotel managers, especially at the general manager level. Salaries over $150,000 are attainable for those managing prestigious, high-revenue properties.
While compensation varies across hotel segments, focusing your early career experience on 4- and 5-star hotels is key to maximize your earnings long-term.
