There is the Talbot Inn on Woolshops on an 1852 map which is labelled Talbot Hotel on the 1890 map.
The other Inns of that name in the area (that I know of) are in Illingworth and Elland, which are about 3 and 3.5 miles from the town centre respectively. Considering Lord Rockingham is supposed to have stayed at what is now Somerset House in the town centre, a couple of minutes walk from Woolshops, it seems likely that you've got the right one.
Bear in mind I'm not an authority on the topic at all.