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Before I read the comments I visualized exactly what tqtqtbw suggested. That gets my vote!

Could you add a photo of the whole wall? The step thickness of the window trim above leads me to believe your house has a modern styling that must be considered. Is the thick trim found in other areas?

The thick trim is part of the architecture of the whole wall. Do you have more of it elsewhere in the house/room? Notice how the left ceiling light is recessed in the thick trim angle.

I think I would definitely get rid of the colorful tile and do double push latch cabinet doors over the openings. You could remove the thick trim in the cabinets. Leave the thick trim on the rest of the wall unless you plan on making this a big project and removing it to the ceiling and redoing the light.

Do you have a replacement tile in mind?

It's a very modern styled house architecturally. However, I think the thick trim is limited to just that area. There are three recessed lights at the top (about 27 foot high ceilings). The miami vice tiles really don't do it for us (although we have had some guests rave about them...we questioned their sanity).

We would like to replace them, although with what, we are not sure. I think we are open to stone or brick, or even tile, but given that it is a modern style house, not sure what type of material would be advisable. I like the idea of cabinetry on each side, similar to the pic shared by Tqtqtbw. The windows on top really add to the overall house, but make it difficult to plan around them.

"miami vice tiles" ...haha, very true!

I also like the idea of built-ins on either side but something more similar to this style (see below), which feels more true to your home's design. I would also keep the fireplace surround very simple and minimal; no small tiles. I would opt for a slab over tiles. I would also avoid a hearth in this situation.

Drummond Modern Transitional · More Info

B/S House · More Info

I like the smooth surface of this fireplace and the painted and lighted side niches. Neutral finishes so that the rest of the room stands out.

Coastal Florida Homes · More Info

I would pull the tiles off and have it stucco'd to match everything else. Use slab doors with push latches as suggested and paint them to match. On the windows above, you could add one glass shelf on either side and add some pretty glass pieces to reflect the light during the day. In the evening, you can put the spots on a dimmer and let them shine down on whatever you have displayed. Leave everything above that clean and open to let the architecture be the center of attention.

Hi Todd, I'd like to post your design question on Stuccco.com to try and help you get more design advice. Would you be okay with this?

Hi, i like the idea of a smooth surface. I think with the modern styling, that would probably fit better, even though I'm more partial to a traditional layout. I didn't think of stucco but that's a good option as well. I was also thinking of white brick, to match segments of the exterior of the house, but finding that exact brick might be kind of tricky.

Matt, yes, I would definitely be ok with this. The more ideas the better! Thank you.

Get rid of the window above. It shows that it’s a fake and not a masonry structure.