How Much Do Motel Managers Make? The 2026 Salary Guide

How Much Do Motel Managers Make? The Hard Truth for 2026

If you are over 40 and looking at the motel industry, you aren’t interested in “potential” or “vague perks.” You want to know the numbers.

• The Australian motel sector is regulated by award rates.
• It can provide reasonable income, and above average opportunities to save money.

The short answer to how much do motel managers make? Depends entirely on whether you are an “award-rate worker” or a “strategic asset.” for a motel owner. If you have a track record of increasing motel performance and can prove it, many motel owners will be significantly above award.

An on-site motel manager is largely unsupervised, and nearly the entire performance of the motel is on their shoulders. If you are hungry to grow a big income, talk with the motel owner, ask them for transparency on the last year’s figures (LY) and if there is an opportunity to get a performance bonus for achieving agreed financial targets and non-financial targets like guest review scores.

The Floor: The Hospitality Award 2020

As of July 1, 2025, the Fair Work Commission implemented a 3.5% increase to the Hospitality Industry (General) Award [MA000009] . This effectively set the new national minimum wage at $24.28 per hour.

For a Level 5 supervisor or a Duty Manager, the base hourly rate sits between $29.88 and $30.73. If you are being paid hourly, you are entitled to penalty rates—Saturday (1.25x), Sunday (1.5x), and Public Holidays (2.25x). However, if you are a professional manager, you shouldn’t be looking at hourly rates. You should be looking at Clause 25.

The 125% Rule (Salary Absorption)

Most professional motel management roles use the “Salary Absorption” model. To legally roll overtime and penalties into a single flat salary, an employer must pay you at least 125% of the Managerial Staff base.

For the 2025–2026 financial year

The minimum legal threshold for an absorbed salary is $75,915 plus superannuation. If you are offered less than this for a “live-in” management role that expects 24/7 availability, the offer is likely non-compliant with the Better Off Overall Test.

Regional Premiums: Where the Real Money Is

National averages are misleading. While a manager in a capital city might earn $85,000 to $100,000, regional Australia often pays a premium. Getting good managers in regional locations is a challenge, and re-training can become expensive.

In 2026, market data shows staggering variations:

• Gladstone & Central QLD: $155,000
• Bundaberg & Wide Bay: $125,000
• Bairnsdale & Gippsland: $100,000
• Western Australia: $72,500 (Note: This indicates a market still clinging to basic Award minimums).

High-earning managers aren’t just “running a motel.” They are managing logistical hubs for the resources sector. To command these six-figure salaries, you must move beyond basic check-ins and master motel marketing and revenue optimization.

The Management Couple Advantage

The most common—and lucrative—model is the management couple. In 2026, total packages for couples range from $120,000 to $170,000.

The “hidden” value here is the on-site residence. A two- or three-bedroom unit plus utilities is worth approximately $30,000–$40,000 in tax-free benefits. In regional areas, this is often exempt from Fringe Benefits Tax (FBT), making it more valuable than a higher cash salary in a city where you’re paying $600 a week in rent.

How to Maximize Your Value

Owners don’t pay high salaries out of the goodness of their hearts. They pay for the protection of their asset. If you want to move from the $75k bracket to the $100k+ bracket, you need to be able to justify your skills with a track record, and the relevant qualifications.

• Complete a motel management training course to prove you understand modern compliance.
• Consult with a motel consultancy to understand how to audit a P&L.
• Read The Essential Guide to Motel Management to sharpen your operational logic.

Relief Motel Management

The verdict:

In 2026, a competent motel manager or couple should expect a package exceeding $90,000 (individual) or $150,000 (couple) when including the value of accommodation. Anything less suggests you are either under-qualified or being underpaid.

Frequently Asked Questions

• Is the salary based on living on-site? Most motel management roles assume you will live on-site but it is important to confirm this with the employer.
• Is it 7-days a week? The main thing when starting a role is to understand your contract and ensure your expectations are the same as your employer. Check that there are provisions in place to support days off and annual leave? While many motels don’t have this in place, ultimately, without time off the job will take its toll on you.

Looking to Recruit a new Manager?

Contact the Motel Coach team today. Recruiting the right Motel Manager is critical for protecting your investment. If your looking for a new motel role, Motel Coach regularly has motel manager jobs available - submit your CV today.