I have traveled a lot, all over the globe, and this is one of the best places to stay ever for me. An extremely relaxing, wonderful and expansive riad and excellent service. our room was modern and clean. The food in the hotel is superb, you get to chose you own location to eat from outside in the breeze to some intimate little nook or cranny, really quite charming, and the food seems to keep coming all night. It is the best food in Essouaria by a long chalk (ok I quite like the Tagines in the local restaurants but there are only so many over cooked and soggy vegetables that a man can eat in his life). It seems a tad expensive at around £20 per person (dinner can easily be found for less than £10 a head in the Medina) but money well spent for a good evening in. The enormous complimentary breakfast is also rather wonderful eaten on the roof terrace overlooking the harbour and the beach, but beware the seagulls, many a Morrocan doughnut was lost from inattention.
The only down side of the place, and this is reflected throughout Morocco, is alcohol is hard to find and expensive when you do find it, a small scotch in the bar cost £8 and the cheap, cheap bottle of wine was £20, it is a bit like going into rehab for me. There is one booze shop in the city and it is just outside of the Medina walls at the end of Avenue Mohammed Zerkatouni where it meets Avenue Moulay Youssef.
I read some of the negative comments here about the the labyrinthine layout of the place, well it's true and I got lost on a regular basis, the different floors are accessed by a number of very narrow spiral staircases (think sword fights up tower in castles) with uneven stairs, to get to our room I would always take the wrong stairs, climb up to the roof walk to the next stair well and drop down a floor to ours, that's just me though. To be honest I thought it majorly added to its charm and character but if you are very unfit (no lifts as far as i saw) or old or disabled this Riad may not be for you.
We also took a trip out to Les Jardins De La Villa Maroc for £50 per couple including lunch. Wow what a beautiful place, fantastic pool, exquisite buildings and the food was superb. We have booked it up for a family holiday next year, yup, it really is that good.
Oh one more thing, don't give up on Essaouria when you first get there, it's relaxed charm takes a while to dawn on you. I nearly got on the bus back to Marrakesh on the first day, so glad I didn't. Seems too quiet at first, but it's just shy really.