Stayed 2 night with the family on the way from Jordan to Sharm. Good base to visit St. Catherine - owner offers trips there for reasonable price.
People are extremely friendly here. Double-deck restaurant at the sea with pillows and low tables is the best chill-out place I ever saw in my journeys. Though you can find the cheaper meal on the street nearby, we had all our meals here :). The hotel as the whole Dahab makes you feel relaxed and lazy... :) Maybe that's because town is quite empty at the moment (which is very pitty).
Rooms are the weak side. Water in the shower is salty, cupboard in our room was broken, air-con old and noisy. Our Children's room was OK (except water), even with the nice Sea view.