The medina, the old portion of the city, near the main square of Djemaa El Fna is where one should look for a riad to crash. You can just as easily stay at the massive luxury hotels that dot the periphery of the old city, but again there is nothing like walking through a fortified doorway into an 11th century medina. We stayed at the Dar Silsilia which was an excellent spot and within 10 minute walk to most sites. There are a lot of Riads available, but be careful as some are not actually licensed by the government and don't carry insurance if something were to befall the traveler.
After unpacking, we got a guide who took us the Marrakech museum, which is painfully small but does house some items of interest. We also had a chance to see various Medersas including the Ben Youssef. We headed to the south end of the city to see the Bahia Palace and the Saadian Tombs. These are worth a visit if you have never seen tombs or a medersa before. Honestly, compared to the ones in Fez these lacked the complexity and awe.
Finally we made it to the Djemaa El Fna, the main square. Nearly 10 days ago there was a bombing here. The people of Morocco were in outrage, but the police were quickly able to find the man responsible. To come here at night, however, one would never know there was a disruption. The square was full with main local bands, snake charmers, and people selling any manner of goods. Keep an eye on your wallet as pickpockets are renowned for their prowess.
I would highly recommend finding a local cafe that has a roof top terrace. Find yourself a spot that also plays some good music. Nearly all the places surrounding the main square has these areas. Then just people watch from above. The view of the insanity below is worth the over priced food and drink.

Keep in mind that anyone you take a picture of in the square will likely have a friend awaiting right behind you to claim payment. Haggling works well and don't ever pay the first price they quote you for the picture you have just taken.
By this time we were getting a bit burned out on the whole souk deal. Sometimes you have to be a bit heartless when you walk through these areas. The locals can spot a tourist from a mile away and will sometimes be aggressive with trying to render a deal out of you.

The night also brings the possibility for western distractions. There is a portion of the new city that reminds me of Vegas. Its lined with massive luxury hotels that each boost its own night club and restaurants.
One of these called Pasha is well known. Its about a 70-100 Dirham cab ride from where we stayed. The restaurant - Crystal is one of the finest places I've ever eaten. A groovy ambience with live singers and fusion French and Moroccan foods. The local night club - Pacha is regarded as the best night club in town. PASS ON THIS PLACE. People are arrogant, drinks are criminally priced, and the place was dead. Go for the restaurants and then go someplace else.
Another gastronomic master piece was Mai Thai. The website says Rabat and I'm sure they have a chain there too, but the one we went too had some outstanding Thai food with a fantastic lounge scene. The local DJ was playing a very hip north African blend of house and trance.
This restaurant is located on a strip of clubs and restaurants that lead up to the casino (not really my thing). We managed to go club hopping - each with a unique rhythm. I'd also recommend checking out Le Comptoir Darna - another very cool scene that starts to explode after midnight with belly dancers and a good DJ
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