It will be alleged the two men entered the hotel on May 13 and set it alight.
It will be further alleged the two men knew there were guests in the hotel at the time.
The fire caused about $2 million damage.
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READ NOWA 30-year-old man from Silver Sands and a 29-year-old man from Mandurah have both been charged with criminal damage by fire and endangering the life, health or safety of a person.
The hotel licensee and a 34-year-old man have been charged with attempted fraud, criminal damage and endangering the life and safety of a person.