My first choice would be Enchantment. It is located about 5 miles outside of town in Boynton Canyon at the base of some spectacular red rock cliffs. The "true" flavor of Sedona in an upscale setting - spa, tennis courts, swimming pool, and an excellent restaurant.

Second choice would be L'Auberge de Sedona located a few miles north of in Oak Creek Canyon. This is very highly rated, with a strong French influence, especially in the higher rated restaurant. I have not stayed here, but some people I know have felt it was a little snooty.

http://www.enchantmentresort.com
http://www.lauberge.com