At time of my visit in March 2008 the hotel scene in Creel yet had to take off and quality of accomodation available was definitely on the low-end side. As a matter of fact, the top-end choice in the center of town was a Best Western and midrange accomodation available would generally compare to one-star motels by international standards.
Hotel Parador de la Montaña is one of those midrange places, conveniently located on Main Street, providing accomodation standard of an international one-star motel. Rooms were spare with decent beds and little else; bathroom, in either of the two rooms I checked out, did urgently need some upgrades but was good enough for a hot shower; service was limited to front-desk check-in/out; a decent Mexican-style breakfast was included in the rate. The owner speaks fluent English and can help you in organizing excursions. My understanding is the hotel is very popular with US travel agencies since it was crowded with US travelers.
Bottom line, if traveling to Creel, you need to realize you are in a place which is still developing its tourist infrastructures and as such you shall adjust your expectations downward. Hotel Parador de la Montaña will not give you a memorable experience but will provide you with a decent base to explore the Copper Canyon.
Directions: On High Street, walking from the Main Square few blocks off on the left-hand side
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Address: Av. Lopez Mateos s/n, Creel, Chihuahua, 33200, Mexico