In the current era, this world is facing environmental complications that affect sustainable development and overall environmental performance. This study investigates the role of Green Human Resource (GHRM) management practices, Green Innovation (GI), and Green Empowerment (GE) to promote the Environmental Performance (EP) of hotels. The study also investigates how Green Transformational Leadership (GTL) and Environmental Knowledge (EK) enhance the relationship between these factors, which is the focus of the research. This study is based on the Ability-Motivation-Opportunities (AMO) theory and employs a cross-sectional methodology. Data was collected from high-level, middle-level, and front-line management staff members of ten hotels in Lahore, Pakistan, categorized as 5-star and 4-star. A total of 340 individuals completed the questionnaire, and 307 responses were finalized for analysis after removing missing and outlier values. The acquired responses were analyzed using the Partial Least Squares-Structural Equation Modeling (PLS-SEM) technique on SmartPLS for measurement and structural modeling. The findings indicate that GHRM practices are positively associated with green empowerment and green innovation, which are strongly linked to environmental performance. The results also found the positive moderating effects of green transformational leadership and environmental knowledge. Furthermore, this research expands the scope of GHRM by integrating variables such as environmental performance and knowledge, highlighting their importance for effective performance in the hotel sector.