An investigation by Wolverhampton City Council found the asbestos insulation at the Mercure Goldthorn Hotel was in very poor condition.
Focus Hotels Management Ltd were fined £10,000 and ordered to pay £2,055 in costs.
"We are pleased that the courts have recognised the seriousness of this case. Being exposed to asbestos puts lives at risks and it is imperative at all employers ensure that their staff are not exposed to such danger. We will not hesitate to take action should this duty of care be breached." - Andy Jervis, Wolverhampton City Council's Head of Regulatory Services.
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