•Employee-centred HRM practices and agile HRM system during a crisis like COVID-19 are more effective.•HRM practices designed to support personal/family life are more relevant during the crisis.•Wellbeing is dominantly driven by social and psychological resources. The purpose of this paper is to explore the human resource management (HRM) practices adopted by hotels during COVID-19 and to examine the impact of COVID-19 on the wellbeing of hotel employees using qualitative thematic analysis. This study presents HRM practices that organizations can use to effectively manage employees in uncertain times. There is compelling evidence that employee-centered HRM practices strongly impact employee wellbeing. This paper integrates the insights from an HRM framework for wellbeing using a job demands-resources model. The paper identifies themes that confirm and extend existing theories and models of wellbeing. The findings are important for policy makers by offering guidance for managing people effectively during tough times.