Based on social exchange theory, we investigate the impact of perceived exploitative leadership on frontline hospitality employees’ service performance. A three-phase analysis of 207 supervisor–subordinate dyads from three hotels in China demonstrates that exploitative leadership has a negative effect on frontline hospitality employees’ service performance. Furthermore, leader−member exchange (LMX) plays a mediating role in the relationship between exploitative leadership and employee service performance. Moderated path analyses indicate that traditionality weakens the direct influence of exploitative leadership on LMX and an indirect influence of exploitative leadership on employee service performance through reduced LMX. We also discuss the theoretical and practical implications of these findings.