A great place for travelers on a budget.
The Hotel Ali teems with budget travelers from all over the world. The staff is very friendly and speak a variety of languages. They are very used to dealing with tourists and offer a range of services (money exchange, restaurant, Internet cafe, etc). If they cannot provide you with something, they can always refer you to someone who can. They gave us the name of the tour company that we used for our desert adventure.
The hotel's rooftop offers one of the best views of the Djemaa el Fnaa around. Each room comes with a basic but free breakfast. Guests can also check their email for free.
The rooms themselves vary widely. The double that my boyfriend and I stayed in was quite spacious and opened out to one of the interior courtyards. My friend's single room barely fit her bed and luggage -- the bathroom was actually bigger than the room itself.
I'm not sure if it was because we were visiting during the rainy season, but the room and bathroom definitely smelled of mildew. I also found a very large roach in the bathroom. My friend, however, said that her single room was very nice -- no smell and no bugs.
The Hotel Ali attracts a pretty young crowd, though I did see a couple of tour groups with older travelers there. The hotel can be a little noisy at night because of its location near the Djemaa and some of its livelier patrons.