I stayed at the Sofitel Karnak at Luxor for a few nights. What a treat. It was reaching the end of my trip around Egypt - and truly, the best was saved for last.
This hotel has a very Balinese type feel - lush, tropical gardens and an open layout. Everything was great. The Pool was absolutely magnificant with plenty of deck chairs and quality food available (though the cushions could have done with a bit of a spruce up). The gardens (right along the Nile) were also spectacular and you could easily sit under the many palm trees overlooking the Nile and onward to the West Bank.
The rooms were smaller than I would have cared for, but still efficient and well decorated in a type of Moroccan/Balinese theme - though it did have a massive clunky CRT TV - but really big deal. The rooms were clean, though the bathroom could have had a slight update and clean (but that is just me being ultra picky). The beds were also the most confortable (read: soft) of my entire trip around the middle east. The buffet breakfast was also the best and afforded the most variety. The laundry was efficent (though they charged it to a different room - but I corrected that!) and the service from the staff was great. They also had individual A/C which meant you could have the room icy cold (and yes, it does not work when you leave the room with the room key - but why waste energy unnecessarily! - it only takes 5 mins to chill the room!)
On the downside, no tea/coffee/kettle or bottle water and the internet was a rather pricey 40EGP for 30mins.
Of note, it is about 5-10min drive from the centre of town. That being said they do have a free shuttle bus service to the Winter Palace beside Luxor Temple (and to Karnak temple) 8 times a day (as well as a free boat shuttle) a few times a day. As such, getting around is easy. I would rather stay out in the lush tropical grounds of the sofitel than in some noisy, dirty and cramped central location. In fact, you may not even want to the leave it is just so relaxing and such a difference from the the noisy, hustle and bustle (and horn honking) experience of Egyptian cities.
I thoroughly enjoyed my stay. It was a busy time in Luxor with all the sights both on the East Bank and West Bank - and coming back each night to the hotel was an absolute treat.