Reading nook?

The chaise is a pretty look, but it might be easier to move two smaller chairs and a small table (in between the chairs). Do you have somewhere to put whatever you have this alcove away during December?

That’s a lovely spot. I’d have at least one comfy chair there arranged so I could see out one window with a table, lamp and large-ish plant as suggested. And a soft rug. You might fit two smaller scale chairs there.

Here are some more inspiration photos. The solid side walls may be a nice spot for a bookcase, art, family photos, etc.

Another option is a minimalistic desk area.

Based on your open floor plan, which is very conducive for entertaining, how about a cart, like this one from Ballard Designs (gets good ratings). Keeps the drinks away from the kitchen and when it is time for the Christmas tree, you can roll it to the back of the sofa...or wherever. Easy.

two lounge chairs and a table or ottoman, but then you have to think about where you will place them at Christmas time

Can you post a pic of the area directly across from this space? Would you actually use it as a reading nook or for extra seating? Those all sound nice but if you don't need it to serve those purposes then it isn't really a good idea.

A rug and huge plant or indoor tree that lives who knows where when the Christmas tree takes its place?

Do you have a purpose in mind for the area? Do any of the suggestions provided appeal to you?

Another option is a game table set up.

How big is it? I think a nice console table maybe that is easily moved for the tree or as mntioned a nice spot for a chair or two,thta can be brought forward when you have a crowd. The pics of the whole space would certainly help. Post those here in a comment DO NOT start another post.I would not put anything that cannot be moved easily.

Looks like the dining room to me, especially given the overhead light fixture.