We were looking at spending a few nights in a traditional riad in the medina in Marrakech and heard about riad Ailen from relatives. It is conveniently located not far from a medina entrance so you don't have to drag your heavy bags a long way through the tiny and dusty streets of that old city! We had a great and fun time staying in that newly renovated riad, the owners and staff are extremely friendly and we had a couscous cooking demo by the chef on our request! Our room was very clean and comfortable and we got priceless information on restaurants, places to buy pottery, how to bargain, how much we should pay for a cab fare (read how not to pay the tourist price!) etc.
The riad is about 15 minute walk to the famous place and to get there you have to go through the last berber market in the medina, it is very exciting and a big culture shock!
We saw on websites and guides lots of riads charging ridiculous prices, we think they want to take us for a ride, we must not forget we are in Morocco not in Paris, London or New York! Riad Ailen offered the perfect budget for us (we paid around 60 euros/night if I remember correctly ) and I have to say this is great value for money and we definitely recomment it. During our stay we saw other guests staying at the riad following word of mouth recommendations.