No doubt discrimination in the workplace is a serious issue facing business sector which in turn may cause various negative effects on the work environment. The study aims to explore the actual practices on the issue of discrimination in employment and its impact on the human resource management strategies and the performance of employees in the hotel sector. Data was gathered using two research methods. Structured interviews were conducted with the executives of human resource management in Sharm El-Sheikh and Hurghada. A questionnaire survey was prepared and distributed to the employees of the front office and food and beverage departments. The results of the study showed that many hotels apply different discrimination practices in respect to the functions of human resource management. These practices have negative consequences on the work environment. There was also a great weakness of the procedures followed by hotel establishments to encounter such discriminatory policies. The study showed the need to draw up laws and standards to avoid any discrimination and achieve the principle of equal opportunities for all employees within the hotel sector.