This study proposes a model based on social contagion theory to evaluate the impacts of authentic leadership on employee work engagement (WE) and trust in the leader (TL), integrating the mediating effect of TL and the moderating effect of workplace well-being (WW). Authentic leadership is disaggregated into its subscales: relational transparency (RT), internalized moral perspective (IMP), balanced processing (BP), and self-awareness (SA). Dubai hotel employees completed 476 surveys. Applying the bootstrapping technique, SmartPLS 4 software was utilized to test the hypotheses in a mediation model. The findings indicate (1) that three subscales of authentic leadership (RT, IMP, and BP) positively impact WE; (2) that RT, IMP, and SA positively impact TL; (3) that TL positively impacts WE; (4) that TL mediates the relationship between RT, IMP, SA, and WE; (5) and that WW moderates the relationship between RT, BP, and WE. Authentic leadership and its subscales are proven to be an excellent tool for achieving employee WE and TL. TL is crucial for effective hotel operation, as it impacts employee WE and acts as a mediator between three subscales of authentic leadership and WE. WW moderates the relationship between two authentic leadership subscales and WE but does not interact in the relationship between TL and WE. Both researchers and hotel managers can benefit from these new findings, which also provide a foundation on which to build future investigations.