If they say you can walk to Wal-Mart they are not in the historic
district. The historic district is pretty much the downtown area,
Main Street, and then Commercial Street. There are some very
old motels that are no longer used for motels in this district, but
I don't think there is any lodging available in the downtown area.
The downtown area (historic district) is pretty much made up
of shops and bars.

That is what I was thinking too! Thank you. I think I'll try to find a nice hotel and just scout out the area. We always pick a different city each year to play around in before going to Chama, NM.
Highway 12 and Raton Pass are beautiful drives, especially in the fall.
Restaurant suggestions for Trinidad would be for good steaks -
BlackJack's Saloon on Main Street, for hamburgers and such -
Lee's Bar-be-cue (it's way off the beaten path, ask for directions,
it is worth it!) and for mexican food - Tequila's on the south
side.
I used to live in Trinidad and owned a business there. It has
a lot of history behind it and Bat Masterson used to be the
sheriff there. After I left Trinidad I moved to Raton, NM where
I lived for 14 years. Let me know if I can help in any way with
your trip!