Everything you could hope for...
Iberotel Arabella is beautiful, professional, and fun. We stayed for four nights the first time, three nights on our second visit, and would go back in a heartbeat.
Excellent food, excellent service, an amazing patch of coral reef, two swimming pools, and entertainment to boot. You won't need to leave the hotel grounds.
(Tip for the penny-pincher, though; right across the street is a shop that sells bottled water for 1 or 2 egyptian pounds a bottle -- the hotel itself sells them for 10 pounds. Bottled water is essential here, as Hurghada tap water is undrinkable.)