I have found two great hotel options in Sedona.
Next to Tlaquepaque is El Portal, a small boutique inn with 12 suites. It was built in the last several years, but looks like a hacienda that has been there for many years. The rooms are very attractive, the courtyard peaceful, the staff excellent and the breakfast really, really good. I highly recommend staying here. The staff was also helpful about getting to the Grand Canyon and in several restaurant suggestions.
I also like the Enchantment Resort. It is in a really spectacular setting at the head of Boynton Canyon a few miles west of town. If you can’t stay there then at least go for lunch or for dinner to see the sunset on the red-rocks. There are two restaurants. Both have outside dining, but the casual one, Tii Gavo, has the better views. The food and service were good, but the views are what you come for. Friends recently stayed there and loved the casitas and the Mii Amo Spa. Since it is located on a sacred site, of interest might be the Native American Program with activities including the Talking Circle, Walk to the Ruins, Medicine Walk, Native American Drum & Flute and weekly documentaries.