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The hotel industry has gained prominence in Malaysia and with the global nature of the industry, transformation an issues including human resource constantly evolving for the better. This quantitative research provides a comprehensive study on competency gap of hotel management graduates from the employers' perspectives. To have a better overview on this issue, a study on the expectation and observation of hotel supervisors towards hotel management graduates in Kota Kinabalu was attempted in this research. A total of 200 questionnaires were sent out to all the star-rated hotels in Kota Kinabalu and 100 usable response were received and analyzed. It was found out that there is a gap in terms of workrelated competencies of the HM graduates from the hotel supervisor's perspective. Apart from that, to identify why the gap is exist, the hotel supervisors' demographic background was tested against the competency gap and it was found out that the relationship between both are Significant, particularly the age, educational level, organization, and length of work experience of the hotel supervisor. This study also found out that there are no moderating effect of hotel management graduates' qualification level and educational institution toward the competency gap. It is suggested that the education institutions and other training organizations pay attention to the results of this study since it was found out that the hotel supervisors felt that the work-related competency provided by the hotel management graduates is below their expectation and as such, it needs to be improve.
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