Hello, it's custom hand painted croc embossed wall covering from Vahallen.

Thank you! Super cool!

Thinking about making a room like this instead of a traditional living room that's never used. Is this room the living room in their home?

Yes it is the living room. It was an empty room that only had their daughter's play teepee in it and after we transformed it into a wet bar/library lounge, it became the most used room in their home.