The global hospitality sector is currently navigating a complex recovery phase where traditional operational models are increasingly insufficient for sustaining competitive advantage. This research investigates the structural determinants of business success within the hotel industry of Chiang Mai, Thailand, a premier global tourist destination. Specifically, the study examines the influence of diverse organizational leadership styles—autocratic, transactional, democratic, and transformational—on the efficacy of knowledge management, innovation management, and innovation capabilities. Furthermore, it analyzes how these mediating variables collectively impact hotel business success, defined by profitability, cost reduction, sales revenue, and customer satisfaction. Adopting a mixed-methods research design, the study utilizes a quantitative approach as the primary methodology, analyzing survey data from 420 hotel entrepreneurs via Structural Equation Modeling (SEM) to test hypothesized relationships. Complementary qualitative data were gathered through in-depth interviews with 18 key informants, comprising executives and industry experts, to provide contextual depth to the statistical findings. The expected contributions of this research aim to construct a validated model of hotel success, offering empirical evidence that leadership styles must be strategically aligned with knowledge and innovation processes to thrive in a volatile marketplace. These insights will assist stakeholders in formulating policies that foster resilience and innovation within the Northern Thai hospitality sector.