Great ideas - thanks!

Recessed lighting or swing arm lamps would be some options for lighting.

Thanks again!

Great ideas, Mark! I think a wallpaper in the alcove could be really pretty and do away with a headboard all together. Just getting rid of all the gold will update the room. Not sure of your style, but I love these chandeliers.

A Crew of Two - wow - great suggestions - we are on a budget so I like the wallpaper idea - do you have any thoughts re the bedside table shelves? We would ideally like a larger bed than a small double

Since you are on abudget i would do away with the small shelves and make an upholstered headboard yourself. I would paint the entire alcove a rich darkish color, as previously mentioned, take doors off( if this is not the only closet in the room, and paint the back of the shelves the same color as the alcove. The swing arm lamps are your best bet for lighting in that small space. You might want to cut a small recess into the side of the closet just big enough for a small shelf for an alarm clock and a place to put your spectacles just before retiring. The arch is really the part that adds interest to the room so dont get rid of it. And most of all dont paint it houzz grey!

I would remove the shelves that are there like Mark suggested. And the wall sconces would give you light. What about something like this rolling table to give you a place to put things?

I really like the rolling table A Crew of Two ! So useful in so many ways. Much better than nightstands.

Thanks again - maison Pompeii - your idea of cutting recesses into the wardrobes to create a small shelf or shelves could really work - I hope I can find someone to do it reasonably cheaply! Interesting wallpaper vs rich colour on the alcove wall - that could be a tough decision!

Paint is the cheapest but wall paper more interesting. since it is not that much and expensive WP will really add alot of glam.