We will be arriving in Eilat on a Thursday evening around 7 PM. Since we will leave the next morning for Petra, I am interested in a nice hotel that is clean and comfortable for 3 of us. It would be nice to be close to the action in Eilat - beach and town. We will not have time to enjoy the facility where we will stay so I didn't feel that we should worry about all of the amenities of a first class resort. I don't know if you can suggest a 3- 4 star hotel that would meet our needs.

The hotels "close to the action" are all a little pricey.
Check out the Dan Panorama. Its a great location, decent standard and not as expensive as some of the others.

Dan Panorama is nice, but it is a 5 star hotel so it's quite pricey and may be too luxurious for your needs..
3-4 star hotels yet nice and on a great location:
Agamim Hotel:
http://www.isrotel.co.il/English/con...age.asp?HID=13
Americana Hotel:
http://www.travelbyclick.net/hotels/...fm?HotelID=240
Rimonim Hotel:
http://www.travelbyclick.net/hotels/...fm?HotelID=273

I'd stick close to the beach (or promnade to be more correct). That's where things are in terms of restauratns/activities/shops, not in town centre. Try Isrotel--they are a chain with different grades of hotels, 3* to 5*. The main differences are locations (whether they're on promnade or not) and amenities/facilities. But Eilat is relatively small and most Petra tours would pick you up from most major hotels anyway.

Oh, and I think you usually get better rates via travel agencies than checking their website directly.

The Orchid is a wonderful hotel in Eilat, though not close to the town center (closer to Egyptian/Sinai border). But after long days, it's a great place to relax in tropical-style bungalows. They may have minimum-night stays however.

If all you are looking for is a nice, clean, comfortable place to stay you may want to consider the Eilat youth hostel (http://www.iyha.org.il/eng/Index.asp...1&ArticleID=67).

This is not the hostel of years ago with dormitory rooms - there are private rooms with TV and mini-fridge, private bath and shower, etc. I'm quite certain you can get an extra bed for a 3rd person in the room - it will be snug, but not uncomfortable. The hostel is only a few blocks walk to the promenade and all the action. Breakfast is included - if you are leaving very early for Petra and it is before the official breakfast time check if they can have something for you "to go".