Riad Houdou is an excellent Riad to stay in if you want to experience the Medina first hand. The staff is excellent and the food is great. They are in walking distance to many of what you are looking to visit within the Medina (shopping, restaurants, etc...). The only knock is that everything is cash based, which they let you know up hand, but just make sure you plan accordingly. Even with this, I would still recommend staying here. Enjoy Marrakech (the Red City).