It's run down and, even though inexpensive, not really worth it. If you are taking the beautiful loop around Wheeler Mountain, I would recommend moving on to Eagle Nest. It's not that far and there are many more lodging and food options.
Questa looks like it has been badly hurt by the economy. While there are a large number of places to buy liquor and beer, there is very little in the way of food. We did get a pizza and it was terrible.
This is a beautiful location on a stunning road. Someone really should put some money and energy into supplying a decent place to stay.