We struggled with what to do with this room when we bought the home. Originally it was an office for the previous owners. They installed a toilet and a sink inside the room, with no walls of separation. There isn’t enough space in the layout to add a separate room for the bathroom area but it’s a lot of open space. So we left it as a half bath for a while.
Over time we realized there was enough space to add a bed for overflow sleeping space for our guests, even though there’s a toilet inside the same room. We don’t count it as a 6th bedroom, but we have found it to be convenient for us when we host large groups of our own.
Down the line we would like to make this into a full bathroom with outside access from the lake – a cabana bathroom of sorts. But for now we’ve nicknamed it “the throne room” since the room’s limited purpose centers around the toilet, “the throne”.