Turkey has a full range of lodgings, from luxury palace hotels through charming, historic inns to simple but clean and cheap pensions and hostels, and even rental villas and flats/apartments.
You can see a lot of them here.
Do you need to reserve in advance?
Antalya Bodrum Cappadocia Dalyan Ephesus Fethiye Istanbul Kas Marmaris
Most Turkish hotels, from 1- to 5-star, offer rooms with private bathrooms, and include breakfast in the rates.
Here are the ratings by the national Ministry of Tourism, and my (rough) price estimates for double (two-person) rooms:
Special-Class Hotels & Inns (YTL85-300+)
Luckily for us visitors, Turkey has hundreds of special places to stay that don't fit easily into the star categories: Ottoman mansion inns, historic houses, boutique hotels, Cappadocian cave dwellings, etc.
These often have loads of character, at least some modern comforts (and sometimes all comforts), and are priced accordingly, anywhere from YTL85 to YTL300 double and occasionally higher.
The Association of Historical & Boutique Hoteliers of Turkey (ÖZBI), has over 60 member hotels of this type.
5-star hotels (YTL200-350+)
Expected luxury and all services. Worldwide chains (Hilton, Sheraton, Kempinski, etc) tend to be smoother but substantially more expensive than the local Turkish chains (Dedeman, Divan, Merit, etc), which offer a bit less class but better value. Breakfast is definitely not included in the normal rates (although it may be in package deals), and costs an amazing US$20 extra in many cases.
4-star hotels (YTL125-275)
Very comfortable local hotels, independent or small Turkish chains, with multilingual staff, nice restaurant and bar, air conditioning, and good breakfast, etc.
3-star hotels (YTL75-125)
Comfortable, with satellite TV, minibars, perhaps even a swimming pool or nightclub in smaller cities and resorts.
2-star hotels (YTL50-85)
Good value! May have TVs in rooms, or just a TV lounge; some pretensions to decor, decent breakfast.
1-star hotels (YTL35-50)
Great value for the budget-minded; simple, homey, often like a European pension. Not a lot of services, just clean room and bath, and sometimes a simple breakfast.
No-star hotels (YTL20-50)
The smallest, cheapest, simplest local hotels are rated by the municipal authorities. These spartan places often have rooms with only beds and a light bulb; a communal cold-water sink and shower are down the hall; a hot shower (if available) costs extra. No breakfast available. If you're traveling on a starvation budget, they're good.
No-star places in a city may be funky or grim; in seaside resorts they're often friendly and convenient.
Turkey has several excellent hostels of the new type: not the spartan, puritan youth and hikers' barracks of the past but comfortable, congenial, low-cost, high-enjoyment lodgings targeted at adventurous travelers of all ages, but primarily younger ones. The many services may include Internet access, bars and lounges, and even belly-dance shows.
Villas & Flats/Apartments
Perhaps the fastest-growing lodging possibility, villas are springing up all along the Aegean and Mediterranean coasts, and flats/apartments are being refurbished in the major cities for families, small groups, and those coming for visits longer than the normal few days. Examples.
A timeshare is a flat/apartment or villa with a number of owners who share use of the place each year. For example, you might purchase the right to spend one or two specific weeks each year in an apartment in Istanbul or Fethiye. This can be a convenient and cost-effective lodging choice for those who plan to visit regularly, or to share the space with friends.
It's also possible to enjoy the advantages of a timeshare apartment without having to purchase, because some timeshare owners rent their allotted weeks to others.
SellMyTimeshareNOW has lots of information on buying, selling and renting timeshares throughout the world, including in Turkey