The hostel is right next to the central market, Jemaa el Fnaa and quite a few other central attractions.
I travelled as a solo girl and the staff: Jawad and Ismail have been super nice, friendly, helpful at all times, wonderful to talk to, they helped me with so many things and made my stay a lot more pleasant!
As downsides, location being this central means you will almost inevitably always go out in the market and have to deal with merchants calling you to visit their stands - ALL. The. Time. It can get tiresome after a few days.
Be aware of Marakech city tax, 3 euros per night