My overwhelming advice to anyone travelling to Luxor, who is searching for some peace and tranquility in and around their hotel, is to stay on the WEST Bank of the Nile.
It sounds a bit overwhelming - "getting a boat" to the East Bank, the location of the majority of tourist hotels (where you'll find the Souk/shops/restaurants etc) - but in fact could not be simpler. There is an official boat going every 10 minutes costing EGP 1 (approx 10 pence UK!) or you can take a private boat at anytime of the day for approx 2.5 EGP per person - so really wont break the bank.
As for which hotel on the West bank, all that I can describe is the Nile Valley, but it provides very clean, safe and friendly accommodation with a good restaurant overlooking the Nile and only 1 minute walk to the boats to cross to the East Bank.
The area around the hotel is quiet and feels safe. I cannot tell you how nice it is to walk to the hotel with no hassle, unlike the EXCESSIVE hassle you get everywhere on the East Bank of Luxor. I am a hardened traveller, but the level of hassle you get from people in Luxor/Aswan really detracts from the experience and is super unwelcome most of the time. A stay on the West Bank also makles it a lot easier to visit the majority of "attractions" as they are predominantly on the West Bank (including the Valley of the Kings and Queens).
Back to the Nile Valley - staff knowledgeable enough, very friendly, very reasonably prices, able to arrange tours with independent guides at cost-effective rates and apprent high quality. Nice swimming-pool available to wind down. Rooms eclectic style, but with ensuite, clean, TV, AC.
Bottom-line, for anyone wishing to stay for a few days in Luxor, at a very decent price (I paid around 80GBP for 3 nights B&B for 2 people via Booking.com), this place comes highly recommended.

I stayed at the Nile Valley with a group of friends in October 2011, our 2nd visit.
It is without a doubt one of the most delightful places i have ever stayed.
The view from the roof top terrace is breathtaking .... everytime.
The management and staff are exceptional - nothing is too much trouble and they're great fun to.
Excellent food and a great choice from breakfast through to dinner.
The rooms are clean and housekeeping is faultless.
I cannot rate this little gem high enough.

I genuinly cannot wait to return in 2012 - get my room ready!

I've eaten at the Nile Valley a number of times and have always been happy with the food. I'm always reluctant to eat salad in Luxor but this place is immaculatly clean and they make a big deal out of saying on the menu that all ice cubes are from filtered water and all salad is washed with mineral water. I had the Greek salad and it was very good.

Constructive criticism? It seems a little picky but, like most of Luxor and interior decoration, the tiles don't always match and local painters don't seem to understand the concept of making sure the paint only goes where it should!

I stayed at the Nile Valley hotel between the 1st September 2011 and the 15th September 2011,this is the third time I have stayed at this Hotel on the west bank. It is in a perfect location a two minute walk to the ferry, even though extension work was going on I found it very quiet,the pool was nice and clean I use to sit on my balcony and watched it being cleaned every morning. I found the staff very helpful and friendly, I also met the owner who was also very friendly and would often have a chat to make sure everything was alright. The only complaint I have is that I could only stay for two weeks and not longer. for me it was the peace and quiet. Colin Norwood