As I live in Israel, I prefer short term rent apartments in Eilat, so I did not stay in Club Med hotel. But, from what I've heard, it's a solid 3-4 star hotel.
About diving clubs and the sites.
There are number of clubs in the area since the best sites are at this location: Almog reserve, Satil wreck, Yatush wreck and some others.
The most "luxury" and expensive ones are Manta in Ambassador hotel across the road and the one nearby on the plaza before the hotel (the one at the entrance to the sea, don't remember its name). Manta is the club I got my AOW certification in (as I though at the time, largest and best club out there). It is really nice, especially after recent renovation. The second one, is large and nice enough and is placed almost at the entrance to the hotel.
There are number of smaller clubs around. Those are more "homey" and get you more personal attitude, though they are much smaller and with less facilities (Manta has a sauna for clients, for example). Those are UDive and Siam Divers, placed very close to the hotel.
There is one more large club near the hotel: Aqua Sport. Although, they have a nice name in Israel, personally I did not like them. They were too slow and took their time when we came to dive there.
In general, Coral Beach is the place to dive in Eilat, as it has the nicest sites in Eilat.
Sorry if I forgot to mention some clubs in the area. All those are very close the hotel (2 minutes walk).
Just go around and select the one you like. All of them will get you underwater safely.
Enjoy your trip.
P.S. Get at least one dinner in "The Last Refuge" restaurant at the plaza near the hotel. It's pretty expensive one (~$40 per person) but it is delicious.
P.P.S. I remembered the name of the unknown (the second largest): Marina Divers
