We were two couples looking for a quiet couple of nights in Telluride (our first visit there). The New Sheridan is ideally situated, right in the main street and convenient to everything. It's a wonderful historic building with loads of charm.
The bathrooms could certainly do with a little more "counter space" - quite pokey, but otherwise very acceptable. The rooms are not air-conditioned, so be prepared to leave windows open if the weather is warm - although you'll then have to accept the noise challenges associated with main street activities. The rooms all come equipped with "white noise machines" - which we found quite effective at masking most noises.
The restaurant is excellent, so in general the place is really very nice. We did experience a very noisy night on the Friday, which we subsequently found out to be due to two large parties (a wedding and a birthday). We had a very unsettled night and were not impressed that the festivities were taking place in the suite next door. However, the management of the hotel were very apologetic and responsive, and they willingly refunded our accommodation charges. They also explained that the parties involved were unusually noisy in their experience, so I guess our timing just sucked. Having said that, it might be worth checking for similar large groups before booking. I marked Sleep Quality as Poor for that reason only - the other night we stayed was very comfortable.