Gracie and Lily sleep together! They LOVE to cuddle with each other! We have beds all throughout the house for the girls to lay on. I made them a king size dog bed for the great room, which they are laying on in the picture above. They have beds in the bedroom, in the hobby shop, in the basement, Lily has one in her kennel, Gracie has blankets and they have travel beds for the cars.
I also made dog bed liners to go inside the beds for when they wet, which is EVERY weekend in the summer at the lake! No more smelly wet dog smelling beds! I made a post about how to make those HERE.
The dogs also love to sleep in our bed, however we don't really allow that anymore since they are sooo big! But every now and then I let them get up and cuddle with me when M's not home!