Hi welcome to HT

Firstly I must make you aware that August temperatures are VERY hot, at least up in to the high 90's most days and a very high factor sun cream is a must, if you are all happy with these temperatures that is ok

For a first visit I would recommend that you choose the highest star rating that you are happy to pay for so that you can get the most facilities and quality, several hotels have water parks attached so that might be something worth looking at for the kids (& adults).

I know you mentioned Naama Bay however it is worth noting that many of the newer and bigger hotels with a wider choice of pools / water parks are located outside the main area of Naama in areas such as Nabq Bay etc.

Naama Bay is a popular area and very much the most touristy and commercial area, plenty of restaurants, bars, cafes, shops etc.
There is a lovely promenade that runs around the bay with the beach on one side and hotels and restaurants on the other, it makes for a lovely hassle free walk.

Now as I think this is your first visit to Egypt?? it is important that I mention 'Hassle' the locals are very friendly however you will be met with an almost constant barrage of shopkeepers, taxi drivers (my pet hate honking all the time) and restaurant / bar touts all trying to get you in.
Most of the time a simple shake of the head and a no thanks or better still 'La Shukran' works and you are left in peace, if you are ever asked if it is your first time in Egypt always say no you have been many times.

If you do wish to buy anything there are many fixed price shops or you can try haggling, never pay close to the first asking price always try and get it for around a quarter of that price or what you think is a good price, if you are not happy with the price walk away, if it's an acceptable offer you will be called back

Excursions

You have a choice of excursions available from Sharm, you can visit the Pyramids in Cairo, Scuba Diving is widely available and there are many other excursions available including trips to Jerusalem, the Dead Sea and Petra. Quad biking is great fun and again available locally.

I gave more in-depth advice on excursions in another post including how to get through the airport easily and whether you need to buy a Visa or not, this might be of interest http://www.holidaytruths.co.uk/forum/first-holiday-sharm-sheikh-t156632.html#p1585120

Remember to take out adequate insurance to cover you if you do go on excursions.

Hotel Location Maps these maps will help show you where hotels are located.

http://www.diveinnresort.com/Maps/Map-Sharm-01.html

http://www.diveinnresort.com/Maps/Map-Sharm-01.html

http://wikimapia.org/#lang=en&lat=28.004347&lon=34.398324&z=13&m=b

Anything else please just ask away

Graham

I know you have mentioned Naama bay but I have just come back from the Coral Sea Water World which is an amazing place for children as here is a water park attached to the hotel.
It is an AI hotel and the food is excellent.The grounds are beautiful with 2 large pools.
Its on a lovely beach with shallow water and is situated in Nabq Bay which is further up the coast from Naama bay and only 15 minutes from the airport.
There is always a breeze here which will be a welcome relief in the soaring temperatures of August.
Its available with Thomson and First Choice.