I would not recommend this place - Hotel Atlas is NOT worth the money. I would recommend either spending more for an actually nice hotel or saving money by going budget. Doesn't matter which - just choose one in the heart of the médina near the action.
Hotel Atlas is set in the higher mountain roads away from the medina and requires a taxi everytime you want to go anywhere (20 DH, don't get scammed into paying more) and since it's away from the city center, they have to call a taxi everytime, e.g. no cabs hang out at the entrance. There's a steep hiking trail behind the hotel leading down into the médina; if this appeals to you, bring hiking shoes or shoes with good traction.
Breakfast was 140 DH for 2: watery coffee, stale bread, sliced oranges, and spam meat. No protein. I would have been better off eating in the Medina for ten times the quality at half the price. To top it off, I tried to pay with a 200 MAD bill and was told they didn't have change. Uh, excuse me, aren't you a hotel?
The "AC" unit was a fan that blew in hot air, no matter what setting I put it on. It was broken in our unit. And there was something wrong with the toilet, it took hours to settle and kept running water all night long.
Wifi is only available in the lobby. Concierge service is hit or miss. Two folks were friendly, but some were rude and grumpy.
Pros? Clean, no bed bugs. And great views of Chefchaouen though the tradeoff is the hike from town.