You might also consider El Gouna, about a 20 minute drive north of Hurghada. There isn't much to do in the town (except maybe play golf) but El Gouna is reported to be quieter and more consistently upscale than Hurghada. We stayed in El Gouna recently at the Sheraton; since I haven't stayed in Hurghada or Sharm, I can't make any comparisons. But we did like our stay there, notwithstanding that it doesn't feel anything at all like Egypt - it's just a nice, comfortable resort on the ocean. We dived for about 3 days with the onsite dive shop.

One of the reasons we chose El Gouna over Sharm is that it was easier to continue on to Luxor after the dive part of our holiday (a 4 hour drive).