Now it's beginning to work! Luv the rug! A few more red showstoppers, and I luv the post about matting your family pic, and larger frame for it. Looks like you might be a bit uncomfortable with the great post idea of moving your sofa out into the room away from wall. If so, could you accept putting it diagonally from the entrance doorway, across that corner where it is, stopping at the edge of your window? That's a bit of a move outward, still can see the fp and tv, and show off your new rug, which could go diagonally in front of the sofa. Then, if you like that, after a while you could move it on out as Deb K suggests. Sometimes intermediate steps are more doable for us than those big changes.Same with painting; if you could first paint just the fp wall, then later paint other walls...seems some color would really make it more homey. Would you cosider a quite contemporary fixture for the light in the center ceiling? Maybe a bit of red could go there!

An entire wall of built-in cabinets and hooks and cubbies for your crafting stuff (and perhaps filing-type stuff and printer for the office). Take a good look at what you have and think about how best to organize and store it and what could be displayed to be pretty and what should be hidden behind curtains or doors. A fold down ironing board on a wall or back of a door somewhere would be great. A nice desk and filing cabinet for the office side... or perhaps a great big table in the middle under the window, wide enough to function for both of you facing each other? A nice curtain rod would make a big difference too. Preferably just about floor to ceiling. I'd put a splash of colour on the walls and keep the curtains simple, but you could go vice-versa too. Something like this: [https://www.houzz.co.nz/photos/modern-bungalow-phvw-vp~4999540[(https://www.houzz.co.nz/photos/modern-bungalow-phvw-vp~4999540)

I think, like you said, due to the fact that there's a larger space when it comes to the hotel lobbies is the reason as to why it works. I think that no matter what you put on the walls (whether it be concrete or marble) will result in tiles not working out. The industrial look tends to be exposed brickwork anyway, or cream or white colours so maybe that's an option you could look into. What did you end up doing?

Everyone has some valid points and so I would also recommend moving the clock to the kitchen wall and place the wall unit under the mirror. Centre with the table with the additions of some artwork each side if the clock with wooden frames to match the clock. Find a low piece of glass or pottery or a runner to tie in the grey shades. I presume u have a grey lounge suite. Change the lighting as to what was suggested by People Space ARchitects.