I've spent 2 nights at this hostel. I've also been in other hostels in Marrakesh so I can compare price/quality. Location - it is not hard to find if you follow their description. Hostel is right in the center of medina, 1 min from the main square.
Positiv: location, price (5 euro breakfest included), nice hall and common room. Small terrace on the roof (without view though), nice breakfest (basic stuff plus fresh orange juice). Stuff was ok, friendly but rather neutral. Main positives that you won't find in some bigger popular hostels in Marrakesh: big lockers, small lamp and plug next to each bed, fast non-stop WiFi (which was not the case in other hostels at all).
Negativ: no toilet paper in WC, rooms as well as beds are quite small (but again for the price you pay its more than good). The negativ for me as for alone-traveller was the lack of atmosphere. The stuff was mostly rather nowhere to see and I didn't really feel like asking for some tours or activities. I would say the hostel is more for groups. If you want to socialize and to find the travel-partners, some other bigger hostels are better for that.
I would recommend to stay in that hostel to everyone who is not travelling alone. Price/quality is good anyway.