Luxor has an extremely wide variety of accommodation options, from camping and hostels, right up to 5 star luxury hotels like the Old Winter Palace Hotel which is of extreme opulence and has played host to both movie stars and heads of state. In all Egypt, Luxor probably experiences the greatest seasonal variation in hotel rates - some hotels can be up to 50% cheaper or more in the low season summer, others have no change.
Whilst the vast majority of accommodation options are to be found on the East Bank, an increasing number are to be found and are being developed, however, on the more laid-back and isolated West Bank, close to the tombs and the Valley of the Kings. A lengthy stay in the area might benefit from staying on both sides of the river for some time.....
If you are arriving in Luxor by train or bus, beware the over-friendly and sometimes pushy hotel touts, especially at the station these guys are a symptom of the sometimes fierce competition between rival hotels, especially at quiet times. Remember you don't owe them anything, but that they get 25-40% commission for convincing you to stay at their "cousin's" or "brother's" hotel, which is then added to your final bill. It's usually best to pre-book accommodation..... Also, use a map or a taxi to find your hotel - discourage attempts to guide you to your hotel, as you may end up somewhere else altogether, in the expectation that you will give in and stay where your "guide" has led you after all.
NB: Women travelling without company should exercise extreme caution whilst seeking budget accommodation in Luxor. Several reports have been made of sexual assault after women were given spiked drinks by hotel touts and staff.
On your first morning in Luxor, you may be woken at dawn by the adhan, or Muslim call to prayer. This normally lasts 5-10 minutes, and after a few days you will find yourself sleeping through it.