I want to have two different subnets on an interface running a hotspot. One subnet 192.168.1.0/24 for management (server and ips for access points)
the other is 192.168.16.0/21 for hotspot clients. How do i achieve this.

HotSpot server is applied per interface.
Do you have any problems with the configuration? Do you want to bypass AP subnet?
Yes I want to bypass the AP subnet in this case 192.168.1.0/24 so that i can access it without hopstop authentication.
Am having issues when connecting using the above setup, the connection gets too slow.
Use ip-binding with type=bypassed to bypass HotSpot authentication for host/subnet,
/ip hotspot ip-binding
I tried putting entries to ip-binding now i cannot browse from the webserver but i can ping. WHat could have gone wrong?
Post the rules you have added to /ip hotspot ip-binding.