With the continuous iteration of information engineering technology, the hotel industry is undergoing unprecedented changes. In this context, the role of leadership in promoting innovative behavior among hotel employees is becoming increasingly prominent. This article delves into how leadership affects the innovative behavior of hotel employees under the iteration of information engineering, and analyzes its underlying mechanisms. Firstly, the iteration of information engineering has brought about changes in management models and innovations in operational models for the hotel industry. This transformation requires leaders to have higher information literacy and innovation ability to lead hotels to adapt to the development of new technologies. By formulating innovation strategies and advocating for an innovative culture, leaders have set an example of innovation for employees and stimulated their willingness to innovate. Secondly, leadership plays an important role in promoting knowledge sharing and team collaboration. Under the iteration of information engineering, knowledge sharing has become more convenient and efficient. By establishing effective communication mechanisms and knowledge sharing platforms, leaders have promoted knowledge exchange and collaboration among different departments and positions, providing strong support for employee innovation activities.