Recently returned from a weeks stay at The Nile Palace. Had a really great time.First thing to say is that this is Egypt, it is not a westernised, sumptuous, oil rich Arab state - if you want that pay 3 times as much and go to the Emirate states! That said the hotel is well maintained, clean and the staff are very pleasant. We took our 15 yo son and had connecting rooms with a side Nile view, recommend these rather than ones over looking the inner courtyard. Seems a shame to come and not be able to see the sun set over what is arguabley Egypts most picturesque sight. Rooms were a decent size with big US king size beds, TV and seating area, bedding and towels changed daily. The pool area is not overly large, but there is plenty of shade and we never had trouble getting a lounger even though the hotel appeared fairly full.
Didn't have too much trouble or hassle on the street, the new owners have made great efforts to move beggers etc away from the hotel.
We used taxis to get around in an evening and there are two pricing structures, but even then you shouldn't be too upset, it's still a fraction of the price you'd pay at home. Remember the average wage is 25 English a month, your weeks holiday is over two years wages for an egyptian.
We ate at all the the hotels food outlets as well as having room service after a late return from a fantastic day trip to Cairo. All were reasonable, but expensive compared to outside the hotel. We ate at Smiley's, Casablanca and Maxines. Maxines being the best (turn right out of the hotel 4 mins walk), in general food is equivalent to decent pub grub. But at 5 to 6 English per person for 2 courses and soft drinks, its good value. Not all places do alcohol.
As for trips, we took the advice of many reviewers on this site and went to Jolleys, in front of the Winter Palace. Day cruise to Dendera, VOTK's 1 and 2, Karnak and Luxor, brilliant balloon flight and an exceptional day trip to the Pyramids and Cairo Museum for 200 English each. Approx 40% of the cost of going with our tour company. Day to Cairo was 155 quid with the rep, Jolleys was less than 80! All our trips were well organised, on time, informative with a guide and driver to ourselves most of the time. As soon at you've unpacked turn left and walk 10mins down the road to Jolleys.
In summary, one day we will go back to Luxor, won't hesitate to stay at the Nile Palace. Had a look round the nearby Sonnesta, very impressive lobby but the pool area lacked much need shade and had no character. If you go with an open mind and remember that Egypt is almost Third World and not oil rich Dubai, you will see some unforgetable sites and have an excellent time!