On behalf of my wife and our friends from the UK who we were travelling with, we have to say the 2 nights at Inn of the Governors was one of the accommodation highlights of our 3 week road trip. Excellent location near the Plaza, on-site parking, afternoon sherry, fabulous breakfast (sets you up for the day), very comfortable unique rooms, and friendly helpful staff. The manager made excellent recommendations of places to eat and sites to see - he is doing a great job making this hotel a top place to stay in Santa Fe.
The on-site restaurant (Del Charo) is good (can be noisy). If you want to mix with locals for top New Mexican food try Tomasita's - you'll inevitbly have to wait for a table, but it's worth it.