We spent three nights here in October 2010. Our room was clean and spacious. The staff was friendly and spoke English reasonably well. It's located just a few blocks from the entrance of the medina. Toilet and shower in the room. The place is quite basic, but met our expectations given the inexpensive rate. Includes light breakfast.

A few tips...

(1) We always had hot water for the shower in the evenings, but it was hit or miss in the mornings.
(2) The sink was really small, which makes made washing clothes a challenge.
(3) There's a post office and laundry place down the street.

Before coming to Fes, we made a phone call to book a one night reservation in this hotel. The person on the phone told us there were still rooms available and book a room for us.
But when we arrived there, they told us that the hotel was already full and that they didn't book any room for us! GREAT!
The only thing they said was "We are sorry"!

So you can't trust people there, that's a shame!
We were lucky that we found an other hotel quickly and well located.

This hotel's location is great and our room had a very nice plaster decoration. And that's about all the nice things I have to say about this place because the service is horrible.

We left our luggage in our (locked) room and when we came back, noticed that someone had gone through my bag, moved my clothes and underwear and used our bathroom. Put two and two together. The next morning (before check-out time), the employee burst in our (unlocked, unfortunately) room with a tourist to show her the bathroom, while we were still getting dressed and packing to leave.

We had to catch a night train and didn't want to carry our bags all day. However after our check-out, the employee refused to keep our luggage (this time, with a lock) at the hostel. I guess they only like the unlocked ones.

To avoid at all costs. Really.

200 dirhams p.night for a single (although i got a triple room)
Staff are friendly.
location is a bit off - 4 mins walk to the main road of medina.
rooms are ok.
but i never got the hot shower they promised will be available at night!