Accommodations for all tariff paying tourists are arranged by respective tour operators in 3 stars rated, government approved hotels and guest houses in twin sharing basis (2 people in one room).
For those travelers who want to upgrade their accommodations from 3 stars to luxury hotels (4 stars and 5 stars) can do by paying the extra premium incurred beyond the cost of 3 star hotels. However luxury hotels are limited to only few western districts of Bhutan such as Paro, Thimphu, Punakha, Wangduephodrang (Gangtey/Phobjikha) and Bumthang.
Farm house facilities are also available in certain places such as Phobjikha under Wangduephodrang districts and are certified by Tourism Council of Bhutan. You can witness the rural life of Bhutan by spending few nights on these farm houses.
Camping is also possible in Bhutan but visitors are allowed to camp only on few designated sites, which are approved by government of Bhutan.