I'm going to let you in on a secret because not many people know about this place - even locals don't know about it.

Best place to have breakfast in Telluride: San Sophia Bed and Breakfast opens their doors to the public every morning for a really really good breakfast buffet. Everything is done to perfection. On top of great food they have friendly service and a homey and inviting ambiance. $16 for everything including beverages. I don't know much about their rooms, but considering how happy everyone looks in the breakfast room, I would imagine it's also a great place to stay.