Beautiful hotel -- ornate courtyard with high ceilings, pool, and terrace overlooking the city. Well-located within the medina with a 10 minute walk to the blue gates. Service was great, and the breakfast was superb -- you have your choice of where to eat, and an incredible selection of food. Additionally, the hotel offers spa services -- massages much cheaper than anything you'll find in Europe/US, and quality was fine.
Only complaints were that the mattresses were a little hard (though this seemed to be true at every hotel we stayed at in morocco), and (since we were there in december) the hotel room got a little too cold for our tastes at night. But these were very minor, and I would definitely stay at this hotel again if I came to Fez.