The concept of diversity management has become a reality in many organizations, where multicultural hotel chains work to integrate minorities, avoid discrimination, and work on the principle of equal opportunities. This article aims to analyze the relationship between diversity management practices and achieving competitive advantage in five-star hotels in Cairo, which is one of the main tourism cities in Egypt. This article relied on the field survey method, where 385 questionnaires were sent to respondents in the selected hotels and 316 were valid. Data were analyzed by using SPSS software version 22. The findings of this study showed that there is a significant and positive relationship between diversity management and competitive advantage. As the diversity approach in hotels is directly related to the presence of a balanced workforce that enhances the organization's ability to attract, develop and retain the most qualified employees, and thus high performance rates, and achieve competitive advantage.