I spent 3 nights at Riad Chafia in late April 2013. This place is a peaceful haven in the madness of the medina - just 10 minutes from the Jemaa el-Fnaa square and within easy walking distance of all the main sites. Inside is beautifully decorated; the rooms are comfortable and welcoming. Tortoises roam free on the roof terrace - a great spot to enjoy breakfast in the morning and sunbathe in the afternoon.
The standout point of Riad Chafia is without a doubt Patrick, the owner. Patrick arranged my airport transfers, recommended good spots to eat, and showed me the route to all of the main attractions. When I wanted to do a little shopping, he even offered to come along and make sure I got the best price.
You can probably find more luxurious riads in Marrakech, but I doubt there are any as welcoming as here. Riad Chafia could (and - given the time and effort Patrick spends looking after his guests - probably should...) charge much more than it does. Absolute bargain for a lovely stay!
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