It's the US way of numbering floors, 1, 2, 3.
For example, room 3317 is number 17 on the top, third, or as some would say, second floor of building 3 - actually it's the room where the air cooling was playing up last week, so we moved to 3116 on the ground (aka first) floor...
The balcony of these third floor rooms have excellent views of the hotel grounds, mountains and sea - provided the room number is about 14 (ie 3314) or higher, otherwise it would be a bit difficult to see the sea. From the rear entrance door you can see the sand plain on which Nuweiba is built with the Swisscare hotel about a mile away but easily located by the presence of a very tall (plastic) palm tree - I think it's a radio mast in real life.