Well it's mostly known as being one of the top dive destinations in the world (along with the rest of the Red Sea).
I've not done the Red Sea yet but even if you're not into diving (or don't think you are) it's at least worth doing a try dive there. The water'll be warm (20 degrees), 20 metre + visibility (Brighton's 5 if you're lucky) with lots of brightly coloured marine life.
Plus there's loads of other great things to do like lie on a beach! I think it's about 25 degrees there in the winter.
hurghada is a nice place for a beach holiday. the red sea is beautiful there and the hotels are very comfortable.
the town itself is interesting, i liked it, but you're more likely to be in a hotel complex.
when we were there we took a two/three hour bus trip to luxor (cost about 50p) and stayed there for a couple of days....tutenkamen, valley of the kings etc, carnak...