- Mid-size employers record short- and long-term disability.
- 92.4 percent record life coverage.
- Benefits are becoming a tool for retention.
MID-SIZE HOTEL companies are less likely than the largest employers to record both short- and long-term disability benefits, according to a new study. This can exacerbate efforts to retain employees while labor costs rise.
Hotel employers with 100 to 199 people on their health plans record both short- and long-term disability benefits 42.4 percent of the time, according to Eleos Life, a digital provider of disability and life insurance. Among employers with 1,000 or more people on their plans, the figure is 74.3 percent.
Eleos based its analysis on public benefit filings to the U.S. Department of Labor from hotel employers covering 720,726 people. The filings cover employers with 100 or more people on their main health plan, so smaller hotels are not included. The insurance provider noted that the filings show benefits employers record, not necessarily every benefit offered or how many employees enroll.
Hotels are not skipping employee benefits in general, the report said. It found 96.1 percent of hotel employers record dental coverage, 91.2 percent record vision and 92.4 percent record life insurance. Only 57.4 percent record both disability benefits. The rate rises with employer size: 57.8 percent for those with 200 to 499 people on the plan, 71.4 percent for 500 to 999 and 74.3 percent for 1,000 or more.
Among technology companies with 100 to 199 people on their plans, 85.4 percent record both disability benefits, according to Eleos. Tech is the best-covered sector in Eleos' data, so it is a high benchmark.
Fewer hours, higher pay, less room for absences
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CBRE's analysis of a sample of U.S. hotels found that hours worked at the typical hotel fell 7.4 percent from 2019 to 2024, while compensation rose 22.1 percent. Salaries, wages and employee benefits also increased 4.8 percent in 2024.
CBRE attributed the pattern in part to hotels' continuing difficulty filling open positions, along with reductions in some services and amenities.
Meanwhile, Asian Hospitality reported on Sept. 28 that labor costs are squeezing hotel cash flow as $18.7 billion in hotel CMBS debt matures in 2026. The report also cited HotelData findings showing overtime increases across key housekeeping positions.
Disability insurance is designed to replace part of a worker's income when an illness or injury prevents them from working. Workers' compensation serves a different purpose, generally covering job-related injuries and illnesses, while disability coverage can apply to qualifying conditions outside the workplace, according to Insureon.
The distinction matters to owners. Workers’ compensation generally provides wage-replacement benefits for qualifying work-related injuries and occupational illnesses, while disability insurance can provide income protection under an employer’s plan for qualifying disabilities. The U.S. Department of Labor’s RETAIN initiative focuses on helping workers stay at work or return to work after an injury or illness, with employment retention among its goals. Whether disability coverage helps an operator retain an employee depends on the plan, eligibility and individual circumstances.
However, cost alone also does not clearly explain the benefits gap. Eleos reports median annual premiums per covered person of $304 for short-term disability, $263 for long-term disability and $421 for dental. Both disability benefits together come to $567. Those medians cover all industries and employer sizes, rather than hotels of a particular size.
"The big chains show this is solvable: they record disability and life cover alongside dental," said Kiruba Eswaran, Elios Life founder and CEO. "The gap is with mid-sized operators and franchisees."
Benefits aid retention
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Insureon said that some employers offer long-term disability as optional coverage paid through payroll deductions. However, the Eleos data does not establish that every hotel should add disability coverage.
Benefits are already part of the industry's recruiting strategy. In a March 2026 survey release, the American Hotel & Lodging Association found that 31 percent of hotel operators were using enhanced benefits to recruit and retain employees, alongside higher wages and flexible scheduling.
“Hoteliers are resilient, but the cost pressures they’re facing are very real,” said Rosanna Maietta, AHLA president and CEO. “From rising insurance and energy expenses to workforce shortages, hotels are navigating significant operational challenges.”
