The Marsam (also known as Sheik Ali) has been renovated early in 2013, and is now much brighter and more comfortable. It serves a full range of soft and hard drinks, as well as food, and some of the rooms now have air conditioning. The new toilet block serving the garden restaurant has 4 clean cubicles, and all had paper, seats and locks when I visited. Towels were provided by the wash-hand basins.
The following pictures were taken there in May 2013. Website address has been corrected (23 Nov 2017).
This is what I wrote in 2011.
This simple hotel is also known as Sheik Ali's. It is adjacent to Merneptah's temple and museum. The restaurant/bar does not serve any alcoholic drinks, but is a pleasant retreat for a cool, refreshing drink in its east-facing shady garden.