Section 196(b) in The Navy (Pay And Allowances) Regulations, 1966
(b)The accommodation arranged in hotels, clubs or boarding houses, or under officers' own private arrangements, shall not be more than is necessary to house the officer and his family and such servants, horses or motor cars as he may be authorised to and does actually maintain; and in any case the officer shall not, under this arrangement, be allowed more accommodation than that which would be allowed in a Government hostel. In towns where there are hostels of different grades, accommodation shall not be arranged in hotel, and the like, in a grade higher than what is suitable to the rank of the officer.