In recent years, the hospitality industry has undergone major changes both within the industry and in its operating environment. Researchers have posited that in an environment of change, as described above, a visionary, or leadership style, would be most appropriate. The study, reported here, compared the use of transformational leadership style with the more traditional transactional style, and examined the effects of transformational leadership on individual and organizational outcomes in a hotel management organization. Results suggest that transformational leadership both impacts perceptions of leadership effectiveness and subordinate satisfaction, and clarifies the direction and mission of the organization.