This study examines the effect of green transformational leadership (GTL) on green creativity (GC) and green performance (GP) in Southeast Vietnam’s hotel industry, using green dynamic capabilities (GDC) as a mediator. Using a time-lagged survey design with a sample size of 244 and PLS-SEM analysis, the research revealed that GTL positively influences GC and GP, both directly and indirectly, through GDC. These findings contribute to the Natural Resource-Based View theory by demonstrating how organizational resources such as GTL can enhance GDC and drive sustainable outcomes in the hospitality sector. The research conducted has practical implications for hotel managers, emphasizing the importance of developing GTL skills, building GDC, and promoting green creativity to improve environmental performance and gain competitive advantages. This research fills in the gaps in the body of knowledge and offers a novel conceptual model for comprehending environmental leadership in the hotel sector.