Gunmen have attacked an Egyptian hotel popular with tourists
At least three tourists have been stabbed by the attackers, who arrived outside the beach resort by boat.
Security forces opened fire at the attackers, killing one and seriously wounding the other, according to Egyptian interior ministry.
Two attackers reportedly holding black ISIS flags burst into the hotel lobby before attacking tourists in the hotel in the Egyptian Red Sea resort of Hurghada.
The assailants travelled by sea to carry out the shocking attack in the upmarket Bella Vista hotel which is popular with European tourists.
Three tourists, two from Austria and one from Sweden, have been wounded, the Egyptian interior ministry said.
The ministry said two men armed with knives had entered the hotel's outdoor restaurant at the front of the building and attacked the tourists.
Egyptian security forces in the hotel shot at the attackers, killing one and wounding the other, said the interior ministry in a statement.
All three wounded tourists were taken to hospital, where one was treated and discharged. The condition of the other two holidaymakers is not known.
So far no terrorist group has claimed responsibility for the attack in the popular tourist spot.
The incident comes after Islamic State (ISIS) claimed responsibility for a bus attack against holidaymakers in Cairo.
Masked gunmen on a motorcycle opened fire at a bus carrying tourists to a hotel close to the famous Giza pyramids on Thursday.
The attackers targeted an upmarket hotel popular with tourists
The terror group said the attack was carried out by its fighters in response to a call by the group's leader, Abu Bakr al-Baghdadi, to target Jews "everywhere".
Those targeted were Israeli Arabs and there were no casualties, according to security forces.
Egypt’s tourism industry has been badly hit by attacks against tourists and years of political turmoil.
The Bella Vista hotel in Hurghada was targeted by gunmen
A Russian passenger plane crashed in Sinai on Oct. 31, killing all 224 people on board, most of whom were tourists returning home from the Red Sea resort of Sharm al-Sheikh.
Russian and Western governments have said the aircraft was probably brought down by a bomb smuggled on board by ISIS.
However, Cairo claims it has found no evidence of terrorism.
Masked gunmen targeted tourists in the capital Cairo