If you must have a sleeping space here, a loveseat that makes into a bed sounds like a great idea. It would probably only sleep one person though. But it sounds odd to have a formal-ish dining table and 6 chairs in the same room with a loveseat. A room which is only 12x12.

Obviously you have a dining space elsewhere that you use now. Would this new dining room be completely unused? If so, why are you considering the change? Is your current eating space unsuited for your needs?

I think you and your husband need to make a plan that satisfies both of you.

Regardless of anything else you two agree on, I certainly wouldn't plan to buy a cheap-looking, uncomfortable bed!

You already have a guest room with en-suite bath. Do you really need more sleeping space for guests than that? If not, find something else to do with the space.

A dining room sounds fine, if you'll really use it. Will you? What's the walking flow like from your kitchen with a loaded tray into that room?

You want at least three feet of clearance from the table edge on every side, so that chairs can be pulled back fully for ease of sitting and rising. So your table should be small enough to allow for that. My guess is the design pros here will recommend no more than five feet max, and may recommend a bit smaller. A smaller size makes even more sense if you want more furniture in the room than just the table and chairs—for example, a sideboard/buffet cabinet.

Personally I would not try to shoehorn a sleeper sofa or any kind of bed into a dining area. If you want a second guest bedroom, buy a bed you'd feel comfortable sleeping in yourself and do it up in a way that will make your guests feel welcome.

My two cents; your mileage may vary.

Thank you for answering. This is an idea formulating in my head right now, as my husband cringes🤣 He's used to me, but I don't do anything until we're both on board.

We only have counter space at the moment, or outside seating. It's hot in south Texas, so outside eating is hit & miss. When we have a large group, the folding tables come out. When it's just another couple for dinner, out comes a smaller folding table.

The walking flow from the kitchen is good.

The extra guests we have are usually teen grandkids.

I think a dining room is a sensible choice. Can you get sleeping bags or air mattresses for the kids?