This dissertation investigates the impact of effective leadership on organizational performance within the hotel industry, specifically focusing on Hilton Hotels Cyprus. The research explores the significance of leadership qualities in the hospitality sector, addressing challenges such as low employee retention and declining guest satisfaction. The study comprises five chapters, including a comprehensive literature review that examines leadership concepts, organizational performance frameworks, and relevant theories like situational leadership and the Balanced Scorecard model. The research employs an interpretivism philosophy, a deductive approach, and a descriptive design, utilizing both primary and secondary data collected through interviews with Hilton Cyprus managers. The findings, analyzed using thematic data analysis, reveal key themes related to leadership roles, employee retention, guest satisfaction, and communication strategies. The dissertation concludes with recommendations for improving leadership practices, enhancing teamwork, and fostering a positive work environment to improve hotel performance. The study also provides an action plan for guest satisfaction, teamwork, leadership perspective, and top-down communication.