This study aims to identify the psychological contracts types that are most prevalent in Egyptian hotels and to measure the impact of these psychological contracts on Job Involvement of employees in hotels. This research was based on three basic approaches, the descriptive in literature review, the analytical in the field study and the explanatory in interpreting and analyzing preliminary data. The field study was conducted on a random sample of 5-star hotels in Sharm El SheikhCity using two survey forms that were directed to a sample of employees and human resources managers. The results showed that the negative psychological contracts are the most prevalent in the hotels under study compared to the positive contracts, because of the low awareness of psychological contract in terms of concept, importance, types and disadvantages of violation. The study also found that negative psychological contracts lead to a low level of job involvement in hotels compared to positive ones. The study recommends that Egyptian hotels need to pay attention to psychological contracts with employees as much as they are interested in the official contracts concluded with them, Hotels must fulfill any promises or obligations to employees and avoid overstating any promises to employees that will be difficult to achieve later.