if this is your first time to Marrakech, and you want to experience the real Marrakech, I would suggest staying in a riad (traditional Moroccan house in the old cityMedina). they are normally situated in the heart of things and you will experience a more authentic Morocco than you would if you stayed in any of the big, modern hotels outside the Medina walls.
That said, riads come in all shapes and sizes (and budgets!)
I suggest you scour Trip Adviser for the sort of thing that might appeal to you, and then read traveller reviews from people who have stayed at the places.
email me if you need any help or advice!
There are a lot of small interesting hotels in the old town (Medina), they are close to the Jamal-al-Fna place, which becomes filled with life in the evenings.
Marrakech is a very beautiful place to visit, it's full of good hotels Riads (traditional host houses)
as a Moroccan travel agent, i can suggest the following:
5*: Kempensky Mansour Dahbi
Atlas Medina & Spa (good rates)
Le méridien N'fis
4*: Atlas Asni (good and new, but i don't find the food really good, unless you will eat outsides, there is a planty of good restaurants)
Ryad Mogador Opera(good and cheap comparing to the others, but offers no alcohool)
Andalous Hotel
if you need more details you can mail me
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