Disclaimer: if you only stay in high end hotels, this is not for you. There are lots of 5 star hotels in Luxor, you'll have no problem finding one. However, if you are looking for a unique and truly Egyptian experience then I strongly recommend Nour El Gourna hotel on the west bank of Luxor (actually in the town of Gourna, near Valley of the Kings, Deir El Medina and the mortuary temples). The hotel is a small compound of adobe buildings and it's utterly charming, and possibly the most interesting hotel in the country. Rooms are good size with private bathrooms, and mosquito netting on the beds gives it a romantic touch (we were there in Feb., no bugs but not sure what it's like in the summer). The owner is well known in the area and spoken of highly as a good man and a man of good character. He was a delight, as was everyone associated with the hotel. The location is fantastic, directly behind the ongoing excavation of Amenhotep's temple and the Colossi of Memnon, across the road from the ticket office for West bank temples and sites, and a lovely easy walk to Medinet Habu, the best preserved of all Egyptian mortuary temples. The hotel is extremely private, in its own small oasis of palm trees and bouganvilla, and the restaurant is fantastic; the food is exceptional and they are extremely generous with portions. I highly, highly recommend this hotel. One note to be aware of; taxi drivers on the east bank of the Nile (where Luxor and Karnak temples are located) may not know where this hotel is, because it's very small. Direct them to the west bank ticket office, and once there tell them to ask anyone-they'll know exactly where it is.
This review is the subjective opinion of a TripAdvisor member and not of TripAdvisor LLC.