We arrived very early in the morning, but still our host Hamid was very kind and welcoming. The rooms are simple, but compared to Moroccan standards very clean and nicely arranged! We felt extremely comfortable staying at Chez Youssef. We also booked an overnight trip to the desert dunes with the help of our host (we can strongly recommend this; please note: you don't have to book the night at the hostel when you sleep outdoors). The dunes, which are of course the highlight of Merzouga, are located just 5 min footwalk from the place.
Definitely try the wonderful dinner Hamid's wife cooks! They also have a washing machine, which they were so kind as to let us use.
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