We arrived without booking etc based on the Rough Guide. The 'family' room with two double beds and ensuite bathroom was fine. But more expensive than expected. The first price was 1000 dhms so we asked to see the cheaper rooms were led around the back, the rooms were pokey and damp. And they wanted 350 dirhams each. We made to leave and they dropped the main room to 600dhms which we took. But we only stayed one night and moved on to just as good but cheaper rooms off the square. The breakfast was good, with a fantastic view of the square from the terrace. As the books say this hotel has location location location and is reasonably cheap - especially if you haggle - but there are cheaper if all you need is a bed for the night. The bathroom was clean, but the shower head was broken. but usable.
I think they are trying to 'upgrade' this hotel and ask higher prices, the furnishings in the rooms seem to suggest that, art work, pottery, nice big beds.
Anyway I would say its a good place to stay and to aim for if yoou havent booked anything and need to get your bearings for the first night.