The main purpose of this study is to discuss the impact of COVID-19 on hospitality sector in Egypt at a represented sample of a five and four-star hotels in Sharm El-Sheikh city which is the center of tourism action in Sinai Peninsula and it has the world top diving sites. It is one of Egypt's best destinations. The field study was done by using web-based survey, which was sent to 384 hotel executives in the investigated hotels. Data were analyzed by using "Statistical Packages for Social Science" - SPSS software. The findings showed that there are significant and positive relationship between COVID 19 (total cases - total deaths - total recovery cases) and hotel revenues (occupancy rates - total number of tourists - total number of tourism nights). The study recommended the necessity of applying precautionary and preventive measures to enhance health safety in hotel establishments and the importance of promoting these steps to enhance the mental image of Sharm El-Sheikh destination.