Purpose Employee stress and job satisfaction are significant issues in the hospitality industry. Moreover, employee stress has cost implications on the stakeholders, i.e. employers and employees alike. There is inadequate empirical evidence that could shed light on job stress and burnout issues of hotel employees with reference to India. Also, the nature and level of hospitality employee stress is not fully understood. Thus, the purpose of this paper is to examine the impact of job satisfaction and job stress on the life of employees in the hospitality sector in Mumbai. Design/methodology/approach Data were collected from a total of 510 respondents (23 for inductive and 487 for the deductive study) from six five-star category hotels in Mumbai. It utilizes a sequential mixed-method approach to measures the study variables through phenomenography and then validates their causal relationship through partial least squares structural equation modeling using Smart PLS-SEM. Findings In the inductive analysis it was found that "work related" factors such as unsafe working conditions, work load, relationship on the job were the most prominent sources of stress for the respondents. In the deductive analysis the causal relationship between job satisfaction, job stress and stress impact verified through Smart PLS-SEM turned out to be significant. It could be inferred from the results that job satisfaction negatively influences job stress and job impact. Similarly, job stress positively influenced stress impact among the hotel employees. Originality/value This is the first study to explore interrelationships between the three important variables, namely, employees' job satisfaction, job stress and its impact on the life of employees in the hospitality industry using the sequential mixed-method approach. The study findings open new avenues for future research using structural equation modeling, thus representing an important contribution of the present study.