Bed and breakfast (lodging/hosted accommodation) is a relaxing and homely way to experience the Bay of Islands. This is definitely the "boutique" option for your visit to the Bay of Islands.
If you want the personal touch, this is the choice for you. Hosted accommodation is generally owner-operated, there will only be a small selection of rooms available and the quality is usually very high. Perfect if you want to relax in to your holiday, to know that a good breakfast awaits and peaceful night's sleep after a busy day.