There are different options for staying in Telluride, CO. Because of the size of Telluride, there are not any large hotel chains. If you are traveling with a group you can rent houses that can comfortably hold 10 attendees. Single rooms are also available that include kitchenettes. If camping is your style there are campground in Telluride and nearby Ouray.
Indoor Lodging - Telluride Hotels
The preferred lodging provider for the Telluride Mushroom Festival is Alpine Lodging Telluride. They offer a generous 15% discount to all festival attendees---make sure you mention the festival when you are booking your lodging or use the code 'CELEBRATION15' when placing your order. Alpine Lodging Telluride can be reached by phone at 866-345-2593.
Many people prefer camping in Telluride because of the gorgeous scenery and community vibe.
Camping in Telluride Resources (from Telluride website)
Camping around Telluride Outside of town there is camping at several Forest Service campgrounds. Information about these campgrounds can be found here. There are no private campgrounds in the Telluride area. The closest Colorado State Park to Telluride is Ridgway State Park.
Camping around Ouray Information about Forest Service campground around Ouray can be found here. Information on private campgrounds around Ouray can be found here. There is a KOA near Ouray.