Good leadership skills and implementation of appropriate leadership styles are one of the key factors in establishing and running any successful company. The leader of the company with the help of managers of different departments has the role of finding the most suitable leadership styles which will motivate the company's employees in the greatest manner. As a part of the leading touristic agency in Croatia, Valamar Riviera d.d. Valamar Tamaris Hotel follows one of its main guidelines which is emphasizing employees’ satisfaction. By leading the employees accordingly, regarding the different departments that they belong to and prevailing team dynamics in such, the highest degree of effective and efficient performance is achieved. What is more, employees who experience positive emotions and develop good associations towards a workplace are likely to express a desire to become a part of permanent personnel. That makes those staff members a valuable asset. Therefore, a set of good leadership skills attracts and retains high value staff. High caliber staff execute day to day operations in a way of remarkable quality, which results in a higher number of hotel guests. All of that, immensely increases the chance for further growth and development of the company as a whole. The main goal of this paper is to thoroughly discuss the importance of leadership and research and form conclusions on how different leadership styles affect the level of employee performance and motivation in the Valamar Tamaris Hotel.