In this chapter, the authors aim to conceptualise human resources within the hospitality sector to better understand how to address the significant challenges currently faced in this field. The hospitality industry, still grappling with the fallout from the Covid-19 pandemic, faces a challenging future marked by ongoing manpower shortages and rising costs. The traditional economic model, where firms tightly controlled all processes and resources, is no longer viable. The industry’s focus is now shifting toward human capital as a critical asset, requiring innovative strategies for effective utilisation. Additionally, by developing a clear understanding of human capital, it is possible to make a strategic shift from a cost-based perspective to an asset-based perspective. Here, theoretical frameworks such as there source-based view of the firm and human capital theory can be useful.