I stayed here in March of '07 and loved it! Staff is friendly, but not intrusive. No one bothers you to join tours and the hotel is very clean and right on the water, with amazing views (you can see Saudi Arabia on a clear day) and a really good restaurant. I'm still thinking about that chicken in orange sauce! I highly recommend it and will definitely stay here my next time in Dahab. It's a bit out of town, but that's what I wanted, and a taxi can have you in town in a jiff. I spent many a quiet day sunning, snorkeling, or reading in the hammocks. There's no pool, but who needs one when you're a stone's throw from the ocean and some of the most amazing marine life in Dahab?
The hotel plans to add TVs and small refrigerators to the rooms. I didn't miss either, but adding them can only be an improvement. They expect this to happen in the near future. Quiet, great ocean views, right on the water.