great idea for a kid's space. even if you don't have kids it's a great space to create for neices, nephews, grandkids or friend's kids. well worth the effort and will always make the little children in your life feel welcome in your home.
Guest room- Create a nook like this by suspending curtain rods from the ceiling. Put a daybed to be the bed in a small bedroom. Closing curtains allows you privacy to maximize all space for lounge and storage- its ok to have chairs right up to the bed!