The competition in the hospitality industry in Bali is very tight. Grandmas Hotel Bali, as one of budget hotel which operates in Bali faces challenges to compete in such environment. To increase competitivenes, Grandmas Hotel Bali needs to maximize the contribution of their employees, because it is related to efficiency and effectiveness of company operation. Previous research have showed that there is relationship among organizational culture, leadership and employee performance. Therefore this study is expected to analyze the influence of organizational culture to the leadership and the employee performance in Grandmas Hotel Bali. One hundred twenty three employees out of 136 answered a self-constructed questionnaire. Four hypotheses were analyzed using the simple linear regression and path analysis. The results of this study showed that Organizational Culture significantly influenced Leadership, Leadership significantly influenced Employee Performance, Organizational Culture significantly influence Employee Performance, and Leadership mediated the influnce of Organizational Culture to Leadership The recommendations to improve the organizational culture are focused on stability in the company by creating clear rules and standard operational procedures, people orientation by considering the impact of decisions taken by management to the employees, teamwork orientation by encouraging interpersonal activities, and aggresiveness by implementing recognition program. Leader must be able to train, advise, and facilitate the employees, be an inspirational motivator, and gives intellectual stimulation to the employees