We stayed in this hotel 3 nights at the end of April 2012.
Location: the hotel is located in the north part of Medina. You can reach the souk in 10 minutes and El Fnaa square in 15-20 minutes walking. The hotel is in a quite and safe location, but as it is at the end of a blind loop, I'd recommend to ask the riad to arrange the pick up from airport on your first day.
Staff: Very kind and collaborative. There's always a man attending the hall 24 hours a day who speaks English. You can ask him to book the dinner or an excursion or a taxi or simply a suggestion for a city sightseen.
Room: The riad have only 6 rooms. We stayed at first floor in Verbena room. The room is not very big but embellished with a lot of Moroccan details and equipped with all the items you may need. On the right hand side there's a comfortable queen size bed, on the left hand side a sofa and an ancient wardrobe followed by the bathroom (bigger than one would expect from the room size). A fireplace is in front of the door and create a sort of separation between bed and sofa. The hotel provides fresh and dry fruit and a bottle of water every day. You'll also find slippers, bathrobes and local shampoo and body oils. There's also a phon (and seems-I haven't experienced it- a serious one, not the small one for travellers).
Breakfast: you may have it where you prefer: on the upper terrace, on your room or at ground floor. It's good and homemade. You can choose between: local or English tea, coffee, fresh orange juice, fresh fruit, cereals, yogurt, jam and two kind of pastries.
Meals: you can have dinner in the riad but you have to reserve and choose your meal in advance as ingredients are buyed daily on a need base. We had the first dinner there and
everything was really good. Portions are very generous. Even the wine was good (not easy in a place where local people don't drink alchool) and the service was impeccable or, in any case, better in respect of other high level restaurants we experienced in Marrakech.
Pool/hammam/massage room: there is a little pool with Jacuzzi with four places to sit in the central patio, a small hammam and a small massage room. We haven't tried the pool neither the hammam but everything seemed really painstaking in all the details. If you'd like to use the hammam, you should communicate it 3 hours in advance to properly heat it up.
Excursion: we made one day tour to Ourika valley organized by the hotel (aprox. 80€). The experience was very positive. We had a driver that firstly accompanied us to a local weekly market (we also saw bargaining of animals - mules, donkeys and sheep); then we visited some cooperatives of local handicraftsman and finally we climbed up to the falls. To visit the falls we had another guide (additional 20€) that guided us through the trails. Visiting the falls requires 45 minutes walking each way. You need sports shoes as you will climb some wetted rocks. Finally we visited the village next to the beginning of the falls trail. The driver has been always kind and ready to deviate the street upon our requests; he never insisted on handcraft purchasing or local shops to be visited but offered diferent intersting options. We could easily speak English both with the driver and with the local guide.
In conclusion, if you want a full Moroccan experience sleeping inside the Medina but you don't want to renounce to quite and luxury, I strongly reccomand this hotel. You'll turn into typical crowded and narrow street of medina and at the end of one blinded loop, you'll find a main door: inside you'll find a beautiful ancient palace with six quite room faced on an internal patio and a staff ready to attend you. Warning: if you don't like small spaces or simply you can't do high and uncomfortable steps, this is not the correct place in fact it is on a walking street inside an old building. Not sue you can find something better inside the Medina.