Tunis is not blessed with either large nice hotels or Riad-type alternatives, and the Dar el Medina is unique in the latter category (the competitor is in Sidi Bou Siad, the dar Said which is lovely but out of town although great for seeing sites around Carthage and there is a convenient train line into Tunis). Rooms are all different, furnished with antiques, comfortable (some wifi issues in one room--we moved), and bathroom in need of sealing a leak around a ceiling sky light). Friendly young staff, copious breakfast. You have to walk to the hotel on foot, no direct taxi access. Place du Kasbah and taxi stand is a short walk. Near top rated tourist-oriented restos in the medina, and a few paces from the main Mosque and the medina's heart. The part of the medina where the hotel is situated is a revovated quarter free of all the bustle. Yet you can walk to the new town and its restos and cafés in 20 mins (same to closest stop on the metro line to the Bardo), a bit more on foot to the main train station . But no need to walk unless you want to--Taxis are inexpensive to get around. The Dar el Medina is expensive--our room "Beya" was quite large and comfortable and we slept well even though it gave on the pedestrain street in front--B&B was €180 (free wifi connectivity). Yet I did not see any other hotel in town I'd rather stay at. Friends were at the Palace where published rate is higher and it would not be to my taste. You can find cheaper (Continental) but this is unique, in the medina, and if I return to Tunis I would stay here or in Sidi Bou Said.
This review is the subjective opinion of a TripAdvisor member and not of TripAdvisor LLC