My friend and I arrived at El Reducto after our hotel forgot about our reservation and was closed for the night. El Reducto staff were most helpful, showed us the rooms available, and offered mint tea and Moroccan sweets on arrival. We took the cheapest (€50) room and even that one was great. The hotel is clean, rooms a and bathrooms are big and beautifully decorated.
The location is also very good, at the entrance of the old medina and at the doors of the Royal Palace, you couldn't ask for more? Their food is the best in Tetouan. We had dinner there that night and their filled aubergines and tagines were to die for. I would definitely stay here in my next visit to Tetouan.