My workshop landlord runs a very fine holiday cottage business – with cottages 5 minutes walk from the workshop http://www.carswellcottages.com/ - they do book up well in advance though!
For camping in luxury try the excellent http://readytenthire.co.uk/ who will set up and equip a beautiful bell tent for you at a campsite of your choice.
The Ivy Barn B+B, Holbeton, is the nearest B+B – it has recently been taken over and now has good reviews from course participants. http://www.theivybarnbnb.co.uk/
I have recently heard very good things about Plantation House in Ermington – excellent food!
Cadleigh Manor at Ivybridge. Dog friendly and people friendly too by all accounts.
There is also the Mildmay Colours which I stayed at many years ago – also a pub with decent food.
If you do not have your own transport best to find somewhere in Ivybridge, which is on the main Great Western train line, or stay in my village – Sparkwell, My friends Penny and Dragan run http://theartisanbakeryschool.com/ and provide excellent accommodation. and if you really want to treat yourself book into our Michelin starred, Master Chef Pro winning country pub http://www.thetrebyarms.co.uk/ for supper!
http://www.welbeckmanor.co.uk/ is also in Sparkwell, and has plenty of rooms.
AirBnB also has a couple of basic but nice things to offer in the area. The caravan at Stoke Beach comes highly recommended.
The workshop post code is PL8 1HG
I hope this helps, and I look forward to welcoming you to the Devon Green Wood Centre soon.