The Coral Hilton in Nuweiba has bungalows with the sort of accomodation you are seeking. They also do an excellent all-inclusive package.
I'm virtually certain you would get a substancial amount of change from £7000! You can book them through Longwoods Travel or DIY.
Read some of the reviews here on HT and there is a thread dedicated to this hotel.

What we did when the kids were younger [family of 5] we took two rooms, next door to each other, and hubbie went in with son and I went in with two girls... sorted!

many if not most hotels on the red sea will have interconnecting rooms. you may find it cheaper this way as well. even though you would be paying 4 adult prices the supplements are usually high for larger family rooms. again though tour operators will probably charge you for interconnecting rooms if they quarantee them whilst if you book direct they will probably not. I can recommend hilton sharks bay which is A/i . we have been twice . once via portland and the 2nd time we booked ourselves via http://www.hilton.co.uk and saved around £1500. (we didnt have to pay our hotel bill until checkout which is another bonus). I didnt ask for interconnecting rooms but that is what we got so I know they have them .they were also doing a price on the hilton website where children in the 2nd room were paying half price or something like that.

Personally i would narrow it down to a few hotels where you know they can accomodate you and reviews are good and then get your best price.

lyn

Also how about the 2 first choice/eclipse places . the coral sea resort which gets fab reviews or the holiday village which I believe opened this year. Only problem is as they are first choice run you wont have any competition on prices and you wont be able to book direct.

lyn

There is a beautiful hotel in Nuweiba ,Swisscare is the name, very reasonable rates lovely food ,super people. It is owned and managed by
the same person and the service is excellent.
The accomadation is two bedrooms both en suite with tv ,phone and balcony in both rooms.
Have another look in the Egypt forum and you will see comments, also have a look in the hotel reviews for more information.
I was there just a few weeks ago

Thank you all for taking the time to reply and excuse me for what looks a late reply!

First of all some of you mentioned Nuweiba. I have looked into the aea and have spotted the hotel in Google Earth, but what I can't find out is the snorkelling conditions in this area? From satellite the area looks as though it has a beech ref but the waves look as though they're 3ft breakers?

Also Sharks bay Hilton. I stayed at this one before but that was without children. I couldn't complain one bit regarding all the standards of staff, fod and facilities, but is the building work still going on next door? When I were there 5 years ago t was a lame project and we walked around the site for an hour before being ushered of he site, but isn't he building work in full swing now?
Had I known Hilton Sharks bay had connecting rooms I'd have hammered that one home, but maybe Nuweiba could be the one?

If there are three foot breakers at Nuweiba the fast ferry from Aqaba just came in at a terrific lick!! Usually it's pretty calm.

Nuweiba Hilton has the AI option and a nice sandy beach with easy entry into the sea fo rgeneral swimming or water-play, there is a house reef but it's best for diving not snorkellers really, there is a jetty here with lots of siver fish and plenty of Lionfish around: just to the north there is some decent reef and about a mile up the beach is an excellent fringing reef running past the Swisscare Resort Hotel. The sea right off the beach there is a shallow lagoon.

Snorkelling can be better at Sharm where they have pontoons to allow you direct access over the reef - but for a keen snorkellor who wants to give diving a try the shore based dives at Nuweiba, are ideal.

Nightlife is very limited anywhere in Nuweiba - but for a relaxing break with sand, sea and snorkels it's a great choice...

We were at Hilton sharks bay at easter and Yes building work was in full swing on the piece of what was wasteland between the hilton and the new hotel on the bend which is probably where you walked last time. that is now finished and i believe is the sunrise beach/garden which gets good reviews. so it is quite close but it wasnt bothersome . however it may be if you want to spend a lot a time on the beach or in the sea as that is where it was noticeable. couldnt hear it anywhere else on the grounds. after 2 trips to sharks bay hilton we are now going to try the coral hilton in Nuweiba after the good reports on here although I have to say I have teenagers 14,16 and 11 and they love sharks bay. They have always made lots of friends their own age and we found the majority of guests to be english .

lyn