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Thomas Cook found high levels of E. coli and bacteria that could cause toxic shock syndrome at the Red Sea hotel in Egypt, where two British tourists died suddenly last month.
The tour operator conducted surveys at the Steigenberger Aqua Magic hotel in Hurghada following the death of John and Susan Cooper, a 69 and 63 year old couple from Burnley, on family vacations.
The company said on Wednesday that tests on food and hygiene standards in the all-inclusive hotel had identified high levels of E. coli and staphylococci. The latter most often causes skin infections but can also cause blood poisoning and toxic shock syndrome that can be quickly fatal if they are not treated quickly, according to the NHS.
E coli causes severe stomach disease and potentially fatal kidney failure in a small minority of cases. Thomas Cook said it was now clear that "something went wrong in August at the Steigenberger Aqua Magic Hotel in Hurghada and that standards were below expectations of our hotel partners."
Guests reported that some people were so sick that they involuntarily had their needs in the pools and complained of being served with raw and undercooked chicken and drinks from dirty glasses.
"It is likely that the presence of E. Coli and staphylococci would explain the high level of reported illness among hotel guests during this period, confirming Thomas Cook's decision to remove our 300 customers, "said the tour operator.
The air and water quality tests were clear, as were the controls on the pools, which showed normal levels of chlorine. The experts of the company have still not been able to access the room where the couple fell ill because it is under the control of the Egyptian authorities.
The Coopers' daughter, Kelly Ormerod, was with them the day before their death and said they had used perfume to hide a strange smell in the room.
Thomas Cook's results were evaluated by Dr. Vanya Gant, Clinical Director of Hospital Microbiology and Infection at University College London. The tour operator said Gant did not believe the results "shed light on the still unexplained cause of death" and he waited for the results of the autopsies conducted by the Egyptian authorities.
Originally, the Red Sea governorate had described the incident as follows: "Normal death of an old English man and his wife".
Thomas Cook Chief Executive Peter Fankhauser said, "We are working closely with the Foreign and Commonwealth Office to ensure that we put the best interests of the Cooper family first.
"However, the tests that Thomas Cook ordered and announced today show that hygiene at the Steigenberger Aqua Magic Hotel in August did not live up to expectations. I am really sorry for all of our guests who got sick during Thomas Cook vacation at this hotel.
"These results, without establishing the cause of the tragic deaths of John and Susan Cooper, have prompted us to commit new resources to address hygiene standards in hotels where we identify an above average level of illness.
The German hotel company Steigenberger has already stated that the Aqua Magic Hotel in Hurghada was operated by a franchisee and that it had launched its own standards survey.