ABSTRACT
The novel coronavirus (COVID-19) has inflicted unprecedented damage on the hospitality and tourism industry. However, the mental health fallout of COVID-19 on hotel employees is yet to receive empirical attention. This study, therefore, examines the consequences of COVID-19 on the psychological well-being and financial anxiety of hotel employees. An online survey distributed via a social networking site generated 173 responses, which were analyzed using descriptive statistics and PLS-SEM. The results of the study indicated that COVID-19 risk perception intensified financial anxiety among hotel employees while reducing their social functioning capability. Financial anxiety elicits psychological distress among hotel workers while weakening their social functioning. The relationship between COVID-19 risk perception and psychological distress was mediated by financial anxiety. Implications for hotel practitioners and policymakers are discussed. © 2022 Taylor & Francis Group, LLC.