I always stay in the Hotel Zayanne. It's signposted from the big roundabout in the middle of Khenifra (the one with antelopes or something in the middle) and is maybe 500m to the east. Swimming pool, bar, not expensive, but a bit impersonal.
Saint Ali got about a bit in Morocco, so I have to ask which one are you heading for? The shrine near the lake to the south of Timhadite, the village near Meknes or the water plant near Oulmès?
If it's the one near Timhadite, don't be tempted to take the road heading east from Khenifra as it's impassible. You would need to cut off east from further south, travelling via El Kebab and Boumia.
Edited: 12:07 pm, April 02, 2012