In August I had a good stay at Casa Cuma B&B in Santa Fe. About a 10 minute walk to the main square in downtown (maybe 100yds without a sidewalk). At that time, they were part of the B&B program that Costco sells discounted gift cards for. When I went looking, the options in Santa Fe looked much better, which was also the recommendation of my sister who had visited both.
In Durango there is an older hotel downtown near the train station that gets a fair amount of press. I have seen it but not stayed there and cannot remember the name.