This study examines the influence of co-worker exchange (CWX) on the service recovery performance and creative performance of frontline employees (FLEs) in the hotel sector, grounded in social exchange theory. Specifically, it investigates the mediating role of social loafing (SLF) behavior in these relationships and explores how interactional justice moderates the detrimental effects of antisocial behavior on performance outcomes. Data were gathered from FLEs working in small, medium, and large-scale hotels. Using a robust quantitative methodology, mediation and moderation analyses were conducted to evaluate the construct validity and reliability of the measurements and test the hypothesized relationships. The findings strongly support the hypothesized relationships, indicating that high-quality CWX is significantly associated with improved service recovery performance and increased creativity. Furthermore, CWX reduces the frequency and impact of SLB in the workplace. Interactional justice emerged as a critical boundary condition, effectively moderating the adverse effects of antisocial behavior on performance outcomes. This study extends prior research by integrating insights from social exchange theory and organizational justice to address the underexplored area of SLF and antisocial behavior in the hospitality industry.