[Kobal2]

Bless is targeted, but has an AoE (which gets bigger the Holier the priest is). Your best bet to bless both the priest and some troops at the same time is to put the priest inside the block of holy units.
Even so, where exactly the spell lands is dependant on the priest's precision, and the spell itself doesn't have a precision bonus so it can be quite inaccurate. In fact, it's not altogether rare for solo thugs/SCs with a single Bless order to miss themselves entirely !

As a rule of thumb, a lone H1 priest trying to bless himself + the 9 squares of troops around him he should Bless 3 times to reliably catch everyone (obviously the troops need to be on Hold and Attack or Guard Commander to stay nice and clumped).