The main aim of this study is to explore the effect of an all-inclusive system adoption on the profitability of Hurghada five-star hotels. The current study adopted a quantitative approach using the questionnaire as a tool for data collection to test the study hypotheses and achieve its aim and objectives. The questionnaire form was distributed over 276 managers from the targeted 23 five-star hotel in Hurghada, and only (200) forms were used in this research. The results revealed that the majority of the hotels use a combination of soft &ultra-accommodation and 47% of the respondents believe that the system is optimal also. There was a significant relationship between the All-Inclusive System (AIS) adoption and the cost management as an essential indicator of profitability, while the effect of AIS adoption on occupancy percentage was not significant. The main contribution of this research is to consider different measures of hotel profitability and to explore the impact of AIS adoption on it. This study is considered one of the fewest attempts to research hotel profitability in Egypt.