I'd stay again
Everything in the entire town is in walking distance. The hotel is on the "other" side of town from most of the bars, but seriously, Telluride is tiny and the walk is nothing.
The weather was cool and the hotel, like most places in Telluride, is not air-conditioned. Not unusual for the area, but the hotel only provided a single oscillating fan. It worked fine, but a ceiling fan would be much nicer.
Overall, the hotel was nice, clean, they handled a special request quickly once there that was not an option by the website..... Website said the hotel only had two twins, but when we got there they sent a maid to take them and push them together with some gap material... My wife and I didn't care about the twin issue since we were gonna push them together anyway and use a towel to bridge the gap. But the staff jumped on it and before we were unpacked they had put them together for us.
Only negative is that since there was no air-conditioning, we had to have the windows open at night (and all day). This meant that in the morning we were woken up by trucks and one time a girl got into an argument on her cell phone late at night under our window... I mean she left HER room to be polite, and I guess a good argument has to happen somewhere. And one guy decided a great place to smoke was under our window, so that kinda sucked.
I'd stay there again.