The structure of workplace in hospitality sector has become apparently diverse. As a vital step in defining how diversity affects organizational performance, we suggested training as a mediator over which diversity in income level and race indirectly affects organizational performance. We also emphasized two human resource practices, namely, rewards and performance appraisal, as important possibilities that moderate the impact of employee diversity on training and organizational performance.  A sequential regression analysis was applied on performance appraisal data including information from directors, unit managers, supervisors, low level workers, and customers, as well as financial outcomes from 167 organizations in the United Arab Emirates (UAE) (683 full time employees) in the hospitality sector including hotels, restaurants, theme parks, travel agents, recreational centers, and museums, which assisted in supporting the hypotheses. The findings provide unique practical and theoretical understandings into the effective management of employee diversity.