London hotel management salaries exceed 2008 levels

LONDON The average salary for hotel managers in London increased 6% from 2009 to 2010, exceeding the median seen prior to the global economic downturn in 2008.

The 2010 London Hotel Salary and Benefits Report published by HVS Executive Search presents salary and benefits information for hotel executive committee positions, including general manager and department head. The seventh edition of the report includes data from 62 first-class and luxury hotels in London.

“The impact of the global financial crisis in the autumn of 2008 and the ensuing tough trading conditions for London hotels clearly had a negative impact on management salaries in 2009,” says Chris Mumford, managing director of HVS Executive Search. “This year has been stronger, with solid improvements in occupancy and rate being mirrored by healthy gains in base salary levels, which have risen at twice the rate of inflation.”

The highest gains in individual remuneration figures were recorded by directors of sales, revenue management and reservations, which reported salary increases of 20%, 17% and 14%, respectively. This is a clear indication of hotels responding to the pressures of room night generation and effective yield management by increasing their resources in these critical areas.

Non-revenue generating operational support functions such as human resources, housekeeping, security and front office saw salaries drop slightly over the past two years. Similarly, engineering and food and beverage roles have posted below inflation gains.

Salary increases were slightly higher at first-class hotels (7%) than at luxury hotels (6%).

Looking ahead, HVS expects to see a cautious increase in salaries for most managers at the rate of inflation as the recovery continues and fears of a double dip in the economy dissipate. Such is the competition for talent in sales and revenue management that the trend for above-average salary increases in those disciplines is expected to continue.

The full report is available for £500 and can be ordered online at or by contacting Pooja Vir at