This is probably the only place in the Medina, 1 min from Djemma el Fna, where you can get a cheap beer. It has seen better days but has loads of atmosphere. The lounge is full of comfy chairs and ornate plasterwork. Waiters, most of whom have also seen better days, shuffle around taking orders for drinks. A great place to meet other travellers or just lounge around when you are souked out.
Corner of Ave El Mouahidine and Rue Bab Agnaou.
Updates
This may well be the only place in the medina where you can buy a beer. But it is also one of the worst hotels in Marrakech. As intimated in the tip by David Bates, this hotel is run down. But it is also a pretty grim, dark, dirty place, full of fake plasterwork and sweaty sofas. Much of its problem stems from the fact that it is about the only place in the medina where you can buy a beer - it thus seems to attract the Marrakech lowlife, and is full of stale smoke and noisy kerfuffle. Expensive, at from 250 dirhams, I would NOT recommend it, though it may, if you fail to book anything else, be your only option. I can't agree with David. I like a basic pub myself, but this is a revolting place where they will rip you off. I clicked on the 'I disagree' button but it registered in the 'agree' box. Don't go there.
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