I've stayed in the Central Palace numerous times during 10 visits to Marrakech. It's not luxurious but it is clean and considering it's location on the edge of the Djema el Fna and 2minutes walk from the souks it is great value.
Latifa at reception is a friendly host and they also organise day trips to the nearby Cascade D'Ouzoud or the mountains as well as longer trips to the desert. On one visit with a group of friends we booked the 3 day trip to Merzouga taking in the Dades Gorge & Ait Behnadou and were looked after superbly by our driver. 3 days and nights including food, accommodation, camels etc for something like €60 each. The sunburn was free.
Like a lot of places in Morocco great value can be had, an a little more authenticity, staying in a local place that's maybe a little rough around the edges. I would recommend the Central Palace to anyone who wants a convenient, safe, clean & friendly neighbourhood hotel without breaking the bank.

On our return from Taghia we stayed for one night at Central palace, we left our excess luggage at the hotel and went on a 3 day camel tour, on our return we stayed for 3 more days.
Rooms where clean, price was ok. 250DM (25 Eur.) for one night in a room with shower, breakfast was very good for a price of 25DM! (2,5 Eur.) Personnel was very helpful, if u don't plan to spend your vacation in a hotel room this is excellent option, and yes it's ONE minute walk from Jemaa el-Fnaa!

A friend and myself arrived in Marrakesh by train after spending a week in Rabat and Dar Bouazza. I had read about Hotel Central Palace on Lonely Planet and decided to give it a whirl. Because of budget constraints we stayed in a double room without toilet or shower. There was a sink in our room. I did not mind going the shower on our floor to save the extra money.

The room was very clean as was the rest of the hotel. I think they clean their floors about 5 times day. Check in was very fast and the receptionist spoke good English. As other reviewers have indicated they give you a big block of wood with the key on it. My friend and I never dropped it off at the desk when we left for the souks.Instead we would keep it in our purse.

The hotel was just a short walk to the main square. It was a nice haven to come back to after spending a long day in the souks. The hotel had a couple men keeping watch to make sure unwanted people would not enter the hotel. I felt very safe. We ate at the cafe upstairs several times during our stay and the waiter was very friendly with us.

We stayed here twice, at the start and end of our trip, for a total of 8 nights. The first room included shower and toilet. Whilst it's nice to have a private toilet, the showers are right over the top so after showering, it takes a whole day for the toilet to dry (in winter). The second time around, we took just a room with a bed, and shared facilities (which were maintained well and always clean). At 155dh per night (15 euros), this was an absolute bargain. Toilet paper is supplied generously, however they seem to often run out of towels.

The location, right next to the Djemma el Fna, meant we could have as many adventures as we liked without hassle. However, though many reviewers have mentioned how noisy it was, it didn't bother us at all.

Rooms were very clean, beds fairly old but comfortable. I would definitely stay here again and recommend it to anyone after a cheap, clean, central and friendly place to stay.