My husband and I stayed at the Stater Hotel while participating in the Durango Film Festival. I felt like I walked into 1887 when I entered the lobby. The hotel is historic, authentic and charming, and well maintained. It is furnished with authentic walnut antiques (the nations largest collection) throughout, that are in good shape and something rarely seen in a hotel due to the difficulty of maintaining them. The furniture was not original to the hotel but it might as well have been.
Our room was spacious even though it was the size of an 1880's hotel room which were not particularly big. The bathroom was small but manageable and the antique bed was surprisingly comfortable (and we're pretty picky about beds).
Breakfast was complimentary and served in their more formal restaurant. It is a "Continental" style breakfast with your basic cereal, yogurt, fruit, etc. and the added Pozole soup other reviewers mentioned. While Pozole may be an odd thing for some of us to eat at breakfast, it is still pretty good and I recommend trying it.
The Saloon, while not original to the hotel, is still pretty authentic and fun. We ate a quick lunch there and it was good and priced well.
If you are going to Durango and enjoy history, check in to the Stater Hotel.