The Winter Palace hotel comes in two parts, the original grand old hotel facing the Nile and the modern Pavilion that is situated in the grounds (but about as far away as possible from the older building). We stayed in the Pavilion which in some respects is run as a separate hotel (separate check-in for example) but for most purposes it is just like a modern annex to the main building. Most of the facilities seem to be shared between the two hotels, such as restaurants, the extensive gardens, the pool, and the famous tea on the terrace facing the river.
The Pavilion is a pretty nondescript modern building with rather average rooms and bathrooms. There are big terraces though. The staff were very helpful and courteous. The pool is quite magnificent -- it is huge with an area for children and is heated, apparently even in the coldest weather. There are several restaurants to choose from and the three we tried were all very good. One restaurant which we didn't try had a dress code. The internet facilities were not up to scratch, a promised wifi signal just wasn't there in the rooms. The location in Luxor is very good in one respect, it's close to the major sights. In another respect it's awful. Because it's in the center of things there is an assembly of touts and hustlers waiting to descend on you the minute you set foot outside the hotel. They try to sell you boat rides, statuettes, camel rides, tours, taxis -- you name it. And they don't take no for answer. (If you say No, they say, Why not??) We tried a walk along the Nile outside the hotel but gave up after a few minutes because the hassle was just too overwhelming. If you are accompanied by a guide though you will be left alone. We would probably stay somewhere further from the center if we visit again, just to avoid all the hassle.