Is that allowed? I suppose there’s no chance a professional could masquerade as an amateur so maybe the team can stay anywhere? On the other hand, the coach may want to keep the team out of trouble and insist on staying at the Olympic Village?
Oh, it’s absolutely allowed. The Olympic Village is provided for the convenience of the athletes (though as hinted in the OP, it has also turned into something resembling a brothel over the past few decades), but anyone can make their own arrangements on the outside.