I´ll not bore you with a lenghty financial analysis (not that I can be aprticularly bothered to do one at 2a.m.), but just to give you a rough idea: From a purely financial/economic point of view it´s not a bad deal IF:

a) you actually want to stay at the Fairmont Telluride 4+ weeks a year (and you´d actually be willing to pay for 4 weeks there every year) AND
b) you stay at various other Fairmonts over the course of the year (I´d say minimum 30 nights/year or more) AND
c) you´re a pretty demanding customer looking for the very best service available (e.g. how often is it really important to you what table you get? etc.)

A rough guideline which may not necessarily be accurate in this economic climate, but is pretty accurate when applied over several years would be:

opportunity cost of capital: $200k x 5% = $10k/year
maintainance cost/year: $10k/year
total cost per year: $20k/year

return on investments:

35 nights x $500/night (1) = $17.5k
upgrade to best available suite during other stays (2): 30x $100 = $3k
other benefits (better service etc.): $1k

notes:
(1) Many properties (incl. the Telluride property) are more expensive per night, but for a better analysis one should take a figure which one would actually be willing to pay per night
(2) assumption: 30 nights at other properties, same restriction regarding value as in note 1: what would you be willing to pay for a better upgrade than you can already guarantee using your Plat suite upgrade certs?

it´s a better deal than many other timeshares, but the requirement to spend one month at a particular property over the next years would be a bit of a turn-off for me eprsonally.