A floor plan would be helpful in order to come up with other layout options.

A floor plan of the house?? There is a bedroom on either side of the bathroom and the bathroom opens into a small landing at the top of the stairs.

This is similar to a renovation we did recently. We took an 8x8 bathroom and turned it into a fabulous space (we think)!
OLD -- on the left tub/shower separated from toilet by wall. On the right large closet and 3 foot vanity.
NEW. -- old beige/pinkish fixtures changed to white. Left, soaker tub, half wall and new snazzy toilet. On right, closet was turned into 4x4 walk in glassed shower, separated from new 4 foot vanity. Because it is now all open it looks much larger. We stole 1x4 feet from small, rarely used bedroom. Bonus for that room -- bookshelves on the inset.

Thanks Heather. We've been thinking about encroaching on one of the bedrooms to give us more space and you have given us some ideas.

Where is the door and what does it open against?