I have never stayed there, so I can't comment on the hotel.
But I lived in northern Sinai for two years, leaving about two years ago. During my time there I went to southern Sinai on a semi-regular basis, and usually stayed at my employer's facility in Sharm. But one time that wasn't an option, and they put us up in a nice hotel, at the cost of $28 per night. It wasn't right on the water, but it was was walking distance.
Man I wish I could remember the name, because I would definitely stay there again. It was undboutedly not as nice as the Hilton, but it was nicer than your average Hampton in the US (and included a restaurant). It was so cheap because they overbuilt Sharm; there are too many hotels there. It wasn't a chain, so you'd get no points. And while I am something of a point-freak and I do like Hilton, if I go back I'll probably try to find this or a similar hotel. tls