I was surprised at the quality of this Holiday Inn given the fact that with few options it could definitely be worse and visitors wouldn't have a choice. It probably was another motel originally since it is set up with three separate buildings (a lobby/gift shop/dining building and then two buildings with the actual hotel rooms). As another reviewer noted the buildings are two stories and there is no elevator. None of the buildings are connected so you either have to walk or drive from one to the other.
My room was nice and clean and bathroom was great. Some rooms had balconies, but those I saw where facing the parking lot so that's not much of an incentive for me. My room faced a hillside, which was nice, but I don't know if there were any balconies on that side of the hotel as my room did not have one. I was there over Memorial Day and there was a tour bus and lots of motorcycles in the parking lot, so it was crowded, but not terribly loud. It also appeared that there was a function going on when I arrived so as another reviewer noted you may want to call ahead if you are planning a special dinner at the hotel as there aren't a lot of dining options in Chinle. Overall, I was pleasantly surprised by the cleanliness and upkeep of the hotel.
My complaints are fairly minor. I couldn't check in early (at 1:00 pm) because the checkout time is noon. I rarely ever check in early, but after driving all morning it would have been nice to freshen up a bit, but I do understand that it was busy over the holiday weekend. I also realized I forgot my brush and saw that they offered free toiletries. If I recall correctly the standard toiletry placard in the bathroom said to call and they would bring you the missing item. I called and was told I would have to come to the lobby. As I mentioned this meant a walk across a large parking lot to another building and of course I realized I was missing my brush after I had changed into my pajamas and gotten ready for bed so needless to say I was annoyed at myself for forgetting my brush and then further annoyed that I had to get dressed again to get a cheap plastic comb so I could deal with my hair the next morning. So again, it was my fault, but it was one time I wish someone could have just dropped by my room. I suspect it was because the staff was limited and couldn't leave the front desk area. All in all though I think the Holiday Inn is probably the best option in Chinle. It's also right outside the Canyon de Chelly entrance and visitors center so you can bypass any traffic (and as another reviewer rightfully noted free-range animals) on your way to the rim drives.