We are in this hotel at the moment on our city break, so it's hot/fresh review.
Hotel is not too far from the city center (famous Jemna el Fna market), on foot about 25 min, by bus 5min (bus number 1 and 16, every 15mins, single fare is 4 dirhams, which is about 50p, the bus stop is nearby hotel). We don't use taxi because it's more expensive, about 30 dirhams in the city.
Very important: at the airport when you gonna look for a taxi first price is always 150 dirhams, but remember that you have to haggling. Normal price should be about 60. You can also take bus nr 19, costs 30 per person, one way.
Room is definitely not modern, rather in old Moroccan style, but very clean, towels changed every day, air condition works properly.
Food (option HB), is brilliant for people who want to try special Moroccan tastes, plenty of vegetables, meats, herbs (especially dinners). You gonna get free coffees, teas, juices, milk etc. with your breakfast, but with lunch/dinner you have to pay. Anyway food is great.
Staff very helpful and friendly.
We're really disappointed because we couldn't find the tortoise at the garden, but we're still looking for him... ;)
No bad points about this hotel.
M+T

I was not sure about the hotel when we first arrived he bathroom could do with a refurb, but everything else is great.

The staff are really helpful and friendly great information on buses and excursions. The cleaners do a great job on the room every day. But best of all the food is fabulous the chefs must work really hard. We paid for half board not a great deal more expensive, but really worth doing.

Marrakech is so hectic it's nice to come back and relax. If we came back I would defiantly stay in this hotel again.

Stayed here for 4 nights in Jan 2013 with my eldest son.
Good accommodation and centrally placed.
Friendly and helpful staff - would stay here if I went back to Marrakech.
Managed to upgrade the room without any fuss

I stayed in Diwane Hotel for 4 nights with my family. It was a lovely stay I would recommend it. The staff were all so friendly and nice, each of them were always willing to go the extra mile. The hotel itself looks very traditional and beautiful, especially the garden area. Theres also a little tortoise that comes out in the grass area every afternoon, very cute!

We opted for a half board deal. This was nice as we got to to chose lunch or dinner whenever we wanted. The food was nice but lunch was much better than dinner. The lunch menu varied every day and consisted of a three course meal which was always beautifully presented. Dinner was a buffet and ok. During breakfast we were served these really nice morrocan pancakes with honey and lovely mint tea and a wide selection of other things.

I was a bit aprehensive at first as a lot of reviews claimed the beds were too hard and uncomfortable. However me and my family thought they were perfectly fine. I was able to sleep through the night without any problems. The cleanliness of the hotel is very good. Most the sheets and towels seemed to be brand new and always smelling fresh. The cleaners always left the rooms spotless and did some amazing bedsheet art :)

I booked two excursions through the hotel. One was a quad biking experience which was amazing, the other was a trip to Ourika Valley and a trek up the atlas mountain to see the waterfall (extra 50 dirhams, around £4.30) which was worth it and very fun. We all ended up paying £47 each for both excursions which was very reasonable and saved the trouble of looking around and haggling for a better price outside the hotel. The quad biking experience was really fun and lasted for around 3 hours. In between we also went to a lovely garden and had mint tea, olives and bread. The trip to Ourika Valley was lovely. We visited a berber house and had tea and bread, went to a medicinal centre to buy argan oil, herbs etc (dont get too carried away, we nearly did), we then had a camel ride (extra 100 dh) then treked the mountain (make sure you wear appropriate footwear) and then had lunch in a lovely rooftop overlooking the mountains(not included). Try the lemon chicken tagine if you go! Also if you were planning to buy little souveniers/decorated plates etc buy it during your trek. We bought so many things for really cheap. In comparison to the local shops in Marrakech we made HUGE savings.

We also tried the spa treatments in the hotel. It was lovely and leaves your skin feeling amazing. For a full hammam we paid around £12 and a VIP treatment with massages etc was around £29. Also if your flight is late you can leave your things with reception. Overall I really enjoyed my stay and the staff were exceptionally good and will hopefully go back soon.