Clearly this hotel must have been beautiful 40 years ago but is now in need of a refurbishment to compete with more recent hotels ... It is clearly not La Gazelle d'Or but it is 10x less expensive as well. Also, there are only two or three hotels in Taroudannt's Medina and a few guest houses (some of which could well be great) hence, if you want a hotel, Salam could well be your best choice as its' location is excellent.
Although we had been upgraded to a suite in the old section of the hotel (in the city walls), the room look outdated (walls would need to be skimmed and repainted, furniture was outdated ... and not traditional morocan), and was dark. That being said, the bed was firm and quite good. The old CRT television was not the best TV experience in my life but then, I don't see the Palais Salam as a hotel in which you would like to spend a full day relaxing. The swimmng pool was not super clean but that impression could have been reinforced by the fact that the bottom of the pool had turn from blue to greenish blue which is not flattering for the water.
Indoor bar smells a bit of humidity and is frequented by local business men hence, no women and sports on the plasma TV. Tables around the pool are pleasant for a drink.
The only really bad thing about Salam is the food! Do not eat at Palais Salam's restaurant. I wouldn't say that the food is disgusting, it is just tasteless (i.e.we could taste that the meat had been cooked seperatly from the tagine and that the tagine was put together just before serving)! After having eaten at the wonderful Marrakech Al Fassia, numerous berbere tagines in village houses during an Atlas trek as well as in very good Agadir restaurants, I can easily say that the food in Salam was the worst we had in 10 days. I am sure that Taroudannt has lovely restaurants, unfortunately I was tired and only stayed in Taroundannt one night hence, I cannot recommend any other place (street food near the souk is surely a good option).