From what I see, that portion of the wall that projects out will make it difficult to run a continuous drapery rod. If the vent on the ceiling is not too close to the glass you could hang a ceiling mounted rod. Good Luck

HI -- Hang track sliding panel blinds from the ceiling height so they pull to the left and get a track that is long enough to go past the width of the patio doors for some hanging room. Maybe talk to some window covering shops just to see what other possibilities there are . Hunter Douglas is an excellent brand for drapes and blinds.

I was hoping curtains :( what if I did a rod that was flat on the end and went above instead of inset? My worry with panels is the break all the time...and I'm just not a fan of how they look.

I'd go for curtains, too. Warmer and so many more design options than panels or blinds. We did something similar in my sister's house: mounted plain drapery hardware flush inside the inset, as if it were a shower-curtain rod or a supported tension drapery rod, with a hanging hardware piece in the middle to support weight. In this way, you'd also be able to leave the transom window exposed, since you could align the curtain rod with that horizontal bottom frame. A configuration like this would require two curtain panels. Find the hardware first, then choose your curtains. Look at these sites for more ideas:
http://www.draperyrodsdirect.com
http://www.smithandnoble.com
https://www.theshadestore.com
http://www.countrycurtains.com

HI -- Well, if the blinds are not to your liking , then certainly go with drapes . You could have drape panels on a one way draw rod . Or look into the" ripple fold "drapes . For these you will have to get at a drapery supplier . This would be the more elegant modern look. What ever you choose ,still hang them from the ceiling height (95 inches) and if you have them in a neutral color or white -off white ,then you will have them for a long time where ever you live or changes in decorating.

Thanks so much everyone!

I would use a one-way drapery at this window on a draw/traverse type rod rather than a hand pull as you have such a wide width that hand pull would be difficult. Get it with a good lining or backing as that is a lot of glass area for energy loss. You would get a one way draw rod that extends between 84"-120" and get a drapery that is 108" wide. Mount it flush to the wall on the right and about 10" past the frame on the left. That will be the area the drapery will stack into when you pull it open. There are a number of ready made draperies that you can special order at 96" length or choose from the draperies that can be "made to length" but are standard width- both choices less than having this custom made. Look for linen weave and textured fabrics for the draperies. Best wishes and let me know if you have any questions.

Aloha. In what region of the country are you located?

I am located in Washington (Seattle area).