Two Austrians and one Swede were wounded by unidentified militants who infiltrated a tourist resort late Friday in the Red Sea city of Hurghada, the Interior Ministry said.
The knife-wielding attackers slipped into the hotel through a nearby restaurant, attempting to terrorize the tourists inside, authorities said in a statement.
Security forces guarding the grounds killed one attacker and seriously injured another, the statement read.
Earlier, sources close to the hotel owners told dpa that the attackers entered from the sea in an attempt to kidnap guests.
Sources had earlier said that two militants were killed in the attack.
There was no immediate claim of responsibility for the attack.
Egypt has seen a wave of terrorist attacks since the army toppled Islamist President Mohammed Morsi in July 2013 following massive protests that demanded his ouster.