This study aims to explore the extent of applying outsourcing in a sample of Sharm El-Sheikh hotels and identify the benefits  and barriers of applying outsourcing in Egyptian hotel market. In order to achieve these objectives, a questionnaire form was developed and directed to a random sample of divisions' and department managers in a five star hotels. A total of 420 questionnaires were distributed among them; only 391 forms (93.1%) were valid. The obtained results indicated that the majority of hotels (68.7%) were outsource their activities partially for reducing the need of capital which spent on non-core activities as the main reason (mean= 4.58). Hotels faced difficulty in monitoring vendors and controlling over the activities which outsourced as the main barriers of applying outsourcing (mean= 4.70). Hotel policies and its culture ranked as the main factors affecting on outsourcing decision taking (mean= 4.77). Based upon the findings, some recommendations were suggested and directed to both of hotel managers and suppliers.