I stayed at the Hotel Palestine in Aug. 2007 (not on most recent trip). It is gorgeous and have always the hotel, it's location beyond the park at Montazah, the hotel's entertainment area/garden, and beach side.
The downside was that I pre-booked on the Internet. When I arrived, reception would not recognize the booking even with the print-out. Kept asking for my "voucher" as they are only used to bookings through agents. It took 2 hours to sort out at beginning of the stay and then again 2 hours at the end, and they insisted on doublecharging me. Many phone calls later, once home I finally got the other charge removed. The confrontational receptionists were a pain. THe manager wasn't apparently high enough up to do anything. Yikes!
Unique Qualities: After all that, the room was lovely with a view, and has a historic feel - not huge.
Best area is the seaside. The common areas of the hotel are wonderful. Also a pretty great breakfast (huge)
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Theme: Hotel
Comparison: more expensive than average
Prices: US$120-180
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Phone: 20-3-547-3500
Address: Montazah Garden Palace Alexandria 21919