Deputy chiefs of mission do their entertaining at the embassy as well or do it in a hired location, for example if they're holding an event in a different city to the capital (consulates are obviously a different kettle of fish). Quite often, the ambassador lives in the embassy, which has both private accommodation for the ambassador's family and guest accommodation attached to it for visiting bigwigs.

Ambassadorial residences can vary from palatial separate residences to dingy flats, depending on location and budget.