It was my 5th visit to Sharm and the second time to the Hilton Waterfalls which should tell you just how nice the place is.
Various comments below:

Took the kids on a family holiday and spent quite a lot of time diving.

HOTEL:
very nice, staff extremely helpful and polite, room always cleaned well, lovely sea view, very nice bathroom, air con etc.
The rooms have TV's but nothing much in terms of UK channels which I would have liked to catch up with news when having a rest.

There is some work near beach area, but does not prevent acess to the jetty and some fine snorkelling amongst the fish and corals. There are shops etc nearby but the main town Naama Bay or Old sharm both require a bus or cab.

POOLS:
mostly used the pool down near the sea, which I realised was slightly greener than one would expect. i.e. not been cleaned well enough. The tiles in the kids pool were much bluer. I also saw a film on the surface early in the morning when no one was in it. Perhaps I am being a little harsh but quite a few people had stomach bugs at some point, inluding most of us but who knows where we picked this up.

FOOD:
Hotel food around pool very nice, italian restaurant ( verdi) was ok, I had the large prawns but was a big let down, (small and dry) but overall most places we ate at the quality was a bit less than expected. We were B&B - its like a greenhouse, so eat a little earlier to get the shaded seating and its a little cooler. You are on holiday so a lie in is expected but the dining area is hot under the sun, even with aircon.

OTHER COMMENTS:
Outside the front of the hotel at night they water the grass with smelly water, draw your own conclusions- was very unimpressed with this.

BUS TO TOWN - NAAMA:
20 egyptian return (GBP 2.00). Note a cab from front gate can be negotiated for 25 Egyptian each way so use that if you are a family and it is much more flexible.

DIVE FACILITIES:
Excellent, Mansour is in charge and hes a decent bloke. Can also book your diving on boats here, but is cheaper to pre book in UK.

NATIONALITIES:
A lot of talk of Russians taking over. There are quite a few but they do their own thing so no big deal. The staff do not like them much as they say they are very impolite and have no manners. Me I could not comment either way.

CHECKOUT:
Will charge you for keeping a room after check out time. We paid USD 40.00 for 3 hours - but need it due to being so hot.

Spent a very relaxing couple of weeks here - very friendly staff and all extremely welcoming. Very quiet with little or no 'night' life although only a short ride to Naama Bay in the hotel bus. Rooms really nice and clean - air conditioning broke as did the cold water function although maintenance arrived very quickly once reported. Over all really nice hotel - for those who want some peace away from children make sure you sit around the top bar by the Chillax pool bar - lovely staff, again. For pure indulgence order a Hilton Burger from the comfort of the pool, highly recommended.

The lower pool is more aimed towards kids with daily aqua aerobics and group dance - great fun although not every day! Probably won't get a space by the (very small) private beach area unless you get a sunbed from 4am - beware of leaving towels there early, Russian guests tend to oust you out of the beach area by separating your chosen beds and therefore making it impossible to sit together!

Food is great, particularly the buffet breakfast (check out the pancakes and waffles - and great selection of bread) and buffet evening meal. Food quite reasonably priced although cheaper in Naama Bay. Booking trips through the hotel is really easy and staff are so helpful. Do look around for trips to Cairo (by plane) though as the bus journey is a killer and you can definitely get really good deals in Town - rather than through the hotel.

Massages in the spa are reasonably priced although make sure you specify which massage you book before she starts the massage - I asked for an aromatherapy massage and ended up with a tough Thai massage - being 4 months pregnant couldn't really get the most out of it!

Overall, we had a really relaxing time and would recommend a weeks break there - for the price it is really worth it and supermarket just up the road (turn left out of hotel) for MUCH cheaper water, drinks and snacks - just smuggle them back into the hotel......

I wanted to leave a review on this truly lovely hotel - to say go see for yourself - its wonderful!!
From the moment we arrived til the moment we left, we were spoilt by the lovely staff and lived in real holiday luxury.
For anyone wanting a 5* hotel, a little away from the touristy bits of Narma bay then this is the hotel for you.
Helpful, friendly staff (esp Ahmed - Beach VolleyBall and Abdo - Water aerobics), enough facilities for all so its never over crowded, no noise apart from the chink of a glass at lunch time or the cry of elation from the volleyball court after a hard fought game and a once-daily frenzy in the pool for the 'Bumba song' at the end of the water aerobics lesson.
There's a fantastic private jetty where you can walk out, see all the fish en route then float round the bath-warm sea and feel like you're in your own aquarium. the hotel has its own dive school too which apprently is very good but we didn't use it.
We ate in all the hotel restaurants which were excellent (and very reasonable) though do take the shuttle into Narma bay and try there too. For a special meal - go down to the lower pool to the seashore restaurant and chose your fish and let them cook it for you. We ate there for our wedding anniversary and the staff gave us a special cake as well as fresh fruit and slippers in our room.
Kids club is good though basic. In summer hols there's a full programme of activities though when we visited it was more of a cool room for the kids to escape to with other kids to do drawing, play on the climbing frame etc - but my little boy asked to go every day so it must have been fun for him.
Our room (2301) was lovely - big and spacious - beautiful sea view, our room boy leaving us 'towel art' every day and it was very quiet (no noise from other guests at all).
Thank you to all the staff at the hotel - we will be back!!

Just returned after a weeks break and for those yet to go, the hotel has a great team of staff who look after to from arrival to departure. The food is great and the seafood is not to be missed.

Worth staying on half board for the many choices open to you, but also it's just as easy to get a taxi to Sharm or Narma if you fancy exploring.