We stayed in this hotel for 5 nights when we initially visited egypt in December 2012. The best thing about this hotel is its great location looking right onto the boardwalk and beach. it is in a great location where the restaurants are just at your doorstep and the souk is only a short walk. it is in vey quiet yet central part of Dahab.
The breakfasts are very good- as is the restaurant food.
The room was always very clean and the cleaner would always create these wonderful shapes out of our clean towels. Each day we anticipated what shape he would create.

The other great thing is the owner Shams, who is very very helpful and friendly. He arranged some great tours for us to Mount Sinai and the Coloured Canyon. They were much better value than other places. Shams also has a dive centre for those wanting to dive.

On the downside everything seemed old and in need of a refurbishment.(A lot of Egypt seems to be like this now especially over the last few years since political unrest in this beautiful country). Our bed had sheets that did not fit- I think we had a double bed but the sheets were probably king single sheets. There was no soap in our bathroom. The menus in the restaurant were falling to bits and the outdoor furniture needed to be revarnished or painted and pillows needed to be updated, Proper fitting sheets, soap in the bathrrom and new menus are things that can be easily changed without too much cost.
We stayed in Dahab again in January 2013 with a small group tour and realised that for only a few dollars more we could have got a much better room in a similar location. I think with a bit of thought to detail and money spent on it Shams Hotel could be very good.
Couple in their 50's from Australia