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London hotel management salaries up 6%

26 November 2010 by

Hotel managers in London have seen their salaries rise by twice the rate of inflation in 2009-2010 thanks to improving trading conditions.

A survey of 62 first class and luxury hotels in the Capital by HVS Executive Search showed that the average rise in median salary was 6% over the year, compared with a fall of 3% in 2008-2009.

The average median management salary in London now stands at £43,500, compared with £41,059 in the previous year.

But some areas of management saw much higher gains. Directors of sales, revenue management and reservations saw salary increases of 20%, 17% and 14% respectively, as a result of hotels responding to the pressure of room night generation and effective yield managemement by increasing their resources in these areas.

Commenting on the findings, Chris Mumford, managing director of HVS Executive Search, said: "The impact of the global financial crisis in autumn 2008 and the ensuing tough trading conditions for London hotels clearly had a negative impact on management salaries in 2009. 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."

Despite the gains for managers, non-revenue generating roles such as human resources, housekeeping, security and front office all saw a slight drop in salary. Others, including food and beverage, and engineering saw below-inflation gains.

By Neil Gerrard

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