We had a lovely stay here this August (2013). This hotel is actually in Mountain Village 1,500 feet above the town of Telluride. In winter it is a ski in/ski out property. It is situated with other hotels around a small central plaza. There are abundant restaurants and activities up on the mountain or you can take a 13 minute, breath taking, gondola ride down to town. We parked the car for the weekend and didn't have to use it, the gondola is free and the only way to go. Down in town there are trail heads within walking distance of the gondola of which we took advantage.
The Inn itself is a lovely place, with excellent service. Upon arrival we were escorted around by Charlie, a delightful fellow who parked our car, bused our bags, walked us to a recommended restaurant, set up the private hot tub for us and played with our dogs. The Inn and all of Telluride is very dog friendly. Our room was lovely, really comfy bed, we slept so well. A nice balcony overlooking the plaza. A kitchenette which we found handy for making lunch. A huge bathroom with jacuzzi tub and steam shower. We absolutely didn't feel we got a subpar room because we had 2 dogs. A really great breakfast was also included.
Overall, The Inn at Lost Creek is a wonderful place to stay, excellent service and a small hotel so everyone was able to give very personal service.