Garcia, 2022, pointed out that psychological contracts are important because they establish the expectations, rights, and obligations of both employees and employers by defining the roles and responsibilities of both Parties, psychological contracts have enabled to create a more positive and productive work environment. In addition, psychological contracts can help to prevent misunderstandings and conflict by providing a clear framework for communication and interaction. This research presented psychological contract and organizational commitment as the main variable that affects the performance and productivity of employees in Luxor and Aswan hotels from the employees' point of view as the dependent variable. The primary data was collected through the survey with the help of a standardized questionnaire among 400 employees working in Luxor and Aswan hotels. The collected data was analyzed using SPSS software (23). A five-point Likert Scale was used to test the attitude of the participators toward the research variables. The main result of the research was that the floating hotels' green practices had a significant impact on customers' satisfaction and retention. The main result of the research was that there was a significant influence of the presented psychological contract and organizational commitment on the performance and productivity of the employees working in Luxor and Aswan hotels. The research recommended that the need for hotels in Luxor and Aswan have abided by the psychological contracts they provide to employees in order to maintain employee loyalty and enhance productivity.