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Telluride, CO lodging

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We will be in Telluride for 2 nights in August. I'm debating whether to stay at the Hotel Madeline in the Mountain Village or to stay in town. We can get a great deal at the Madeline, but the parking is expensive and a pain in the neck. Can anyone recommend a good place to stay in town for less than $200 per night? I've been to Telluride before, but it's been many years and I've never been up to the Mountain Village area. Any opinions are welcome!

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