I always stay at the Sky Ranch Lodge up by the airport, and love it. It's less expensive than many of the posh resorts. Great location too - up on top of a hill, just off the main drag, near the Airport Vortex if you care to check it out (even if you don't believe in the New Age stuff the view from the mesa is wonderful). The phone number is (602) 282-6400. As for restaurants, I have always been disappointed with the offerings in Sedona. Shugrue's was OK for breakfast; everywhere else was quite forgettable, unfortunately.
Arizona