Sorry about that, I tried attaching it twice and for some reason, Houzz didn't like it.

It would help me to se what is next to these rooms before I make suggestions.

Hi Kris, the staircase is to the left of the room. There's a small hallway leading to the bedroom door, which is the door in the middle of the room. The door on the bottom leads to the bathroom, that's only accessible from the bedroom.

I have an idea or two, but I need to see the exact location of the staircase, please. Will you add it to your drawing?

If the room that you would be removing the wall to is a bed room, bear in mind that losing a bedroom devalues your home.

The easiest and most practical solution is to add a regular closet along the left wall at the upper part of the room. Keeping in mind resale (per Sophie) I would go with freestanding wardrobes from Ikea. That would allow you to reestablish the other bedroom in future.

I agree about closet placement. I would also consider moving the door to the bedroom to the wall facing the room, so you are walking into your new sitting area.

So here's my updated drawing. All the sizes are approximate. The door can definitely be moved. I was concerned about resale as well, but our house is a 5 bedroom house, so I think a larger bedroom might actually add value (maybe?).

What do you ladies think about putting a wall up that would make the lower half a closet? So the closet is 10x9, and you would walk through the closet to the bathroom?

You can do that, but: what about your window? Do you really want to walk through a closet to get to the bathroom? How badly do you want a sitting area?

Haha, good question. I'm worried I will have to choose between the sitting area and the closet island.

You will.